Statements about the financial ratio characteristics

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Reference no: EM131828970

1. Which of the following statements about the financial ratio characteristics is incorrect?

A. The higher the current ratio, the better.

B. For leverage ratios, we cannot say unequivocally the higher the better or the lower the better.

C. The lower the debt service coverage, the better.

D. The lower (shorter) the days sales in inventory, the better.

2. Which of the following ratios is typically measured and expressed in dollars and cents?

A. DPS

B. ROE

C. Equity Multiplier

D. DSO

Reference no: EM131828970

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