Post Utme Achievers University 2022 Commerce Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2022 Commerce Objective / Multiple Choice
Question 36 POST_UTME_ACHIEVERS_UNIVERSITY • 2022 • COMMERCE • objective

A company's sole trader is considering expanding its operations to a new market. However, the company's financial statements show a high level of debt and a low cash reserve. Which of the following financial ratios would be most relevant in assessing the company's ability to expand?

Answer Options

Correct Answer A. Debt-to-Equity Ratio
B. Current Ratio
C. Return on Equity (ROE)
D. Interest Coverage Ratio
Correct Answer
A
Correct Option:
Debt-to-Equity Ratio

About This Question

This is Post Utme Achievers University 2022 Commerce Question 36. It is one of the objective questions from the 2022 Post Utme Achievers University Commerce examination.

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