Post Utme Mountain Top University 2025 Accounting Question 5

Practice objective / multiple choice question 5 from the 2025 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2025 Accounting Objective / Multiple Choice

Question 5 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's balance sheet shows a total assets of ₦500,000 and a total equity of ₦300,000. What is the correct interpretation of the company's gearing ratio?

Answer Options

A. The company has a high level of gearing.

B. The company has a moderate level of gearing.

Correct Answer C. The company has a low level of gearing.

D. The company has no gearing.

Correct Answer

Correct Option:

The company has a low level of gearing.

About This Question

This is Post Utme Mountain Top University 2025 Accounting Question 5. It is one of the objective questions from the 2025 Post Utme Mountain Top University Accounting examination.

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