Which of the following statements about the capital acquisitions ratio is incorrect?
A) The ratio is computed by dividing cash flow from operating activities by cash paid for property,plant,and equipment.
B) Because the need for investment in property,plant,and equipment differs dramatically across industries,a firm's ratio should only be compared with its prior years' ratio or with firms in the same industry.
C) A high ratio indicates more need for outside financing of current and future purchases of property,plant,and equipment.
D) The ratio increases when an account receivable is collected.
Correct Answer:
Verified
Q70: During 2019,Edna Enterprises had a capital acquisitions
Q71: Flow Company has provided the following information
Q72: Which of the following transactions would be
Q73: Which of the following would be a
Q74: Milliken Company paid $2.2 million to purchase
Q76: Burich Co.reported short-term borrowings of $2.5 million,long-term
Q77: Roberts Company sold equipment for $250,000,purchased a
Q78: A company acquired some land (independently appraised
Q79: During 2019,Eva's Enterprises cash paid for property,plant
Q80: Which of the following is reported as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents