Which of the following generally indicates a positive change?
A) Earnings per share decreases
B) The debt to total assets ratio increases
C) The acid test ratio decreases
D) The return on equity increases

Question

Quizplus · Accepted Answer

An increase in return on equity indicates that the company is generating more profit using shareholder's investments, which is generally considered a positive change. A decrease in earnings per share, an increase in the debt to total assets ratio, and a decrease in the acid test ratio are all typically negative changes.

Which of the Following Generally Indicates a Positive Change