Question

Pick out the wrong statement.

a.

Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner's contribution i.e., debt-equity ratio = total debt/net worth.

b.

Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt).

c.

Working capital = current assets + current liability.

d.

Turn over = opening stock + production closing stock.

Answer: (c).Working capital = current assets + current liability.

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Q. Pick out the wrong statement.

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