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
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