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Commerce Short Question | Gkseries

Q.

Which of the following statements is true ?

[A] Rate of return on capital is Acid Test Ratio
[B] Equity capital to fixed interest- bearing securities is a turnover ratio
[C] Capital gearing is the ratio of equity capital to fixed-interest bearing securities.
[D] Input and output ratio is a measure of profitability
Answer & Explanation

Answer: Capital gearing is the ratio of equity capital to fixed-interest bearing securities.

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