Multiple Choice
In the years 2005-2008,B Co.'s capital acquisitions ratio was 2.74 and from 2009-2012,it was 1.24.From 2009-2012,R Co.'s ratio was .30.Which of the following statements about B Co.'s capital acquisitions ratio is correct?
A) B Co.'s capital acquisitions ratio is relatively low and indicates inability to finance property,plant and equipment with cash flow from operations.
B) It appears that R Co.is more aggressive about investing in additional property,plant and equipment than is B Co.
C) B Co.'s ratio has improved in the period 2009-2012.
D) It appears that B Co.is more aggressive about investing in additional property,plant and equipment than is R Co.
Correct Answer:
Verified
Correct Answer:
Verified
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