Post Utme Igbinedion University 2024 Commerce Question 22

Practice objective / multiple choice question 22 from the 2024 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2024 Commerce Objective / Multiple Choice
Question 22 POST_UTME_IGBINEDION_UNIVERSITY • 2024 • COMMERCE • objective

A company's financial statements show that its current ratio is 2.5, its debt-to-equity ratio is 0.8, and its return on equity is 12%. What can be inferred about the company's financial health?

Answer Options

Correct Answer A. The company is financially healthy and has a strong ability to pay its debts.
B. The company is financially distressed and has a high risk of default.
C. The company's financial health is uncertain and requires further analysis.
D. The company's financial health is not relevant to its ability to pay its debts.
Correct Answer
A
Correct Option:
The company is financially healthy and has a strong ability to pay its debts.

About This Question

This is Post Utme Igbinedion University 2024 Commerce Question 22. It is one of the objective questions from the 2024 Post Utme Igbinedion University Commerce examination.

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