The Debt Equity ratio of a company for three consecutive years was as follows:
| Year | Debt Equity Ratio |
| 1989 | $$\frac{{399}}{{28}}$$ |
| 1990 | $$\frac{{493}}{{34}}$$ |
| 1991 | $$\frac{{624}}{{42}}$$ |
A. That the company's financial structure is sound
B. That the company is capable of meeting its shrot-term liabilities
C. That the interests of creditors are not safe in the company
D. That the long-term liquidity of the company is improving from year to year
Answer: Option C
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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