Which of the following statements is incorrect?
A)Purchasing fixed assets through equity financing decreases asset turnover.
B)Accruing an expense increases the financial leverage ratio.
C)The return on equity ratio increases when treasury stock is purchased.
D)The net profit margin ratio decreases when fixed assets are purchased.

Question

Quizplus · Accepted Answer

The net profit margin ratio is net income divided by net sales.

Which of the Following Statements Is Incorrect