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 purchase of fixed assets will cause the asset turnover to decrease.

Question

Quizplus · Accepted Answer

The Answer of 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 purchase of fixed assets will cause the asset turnover to decrease.

Which of the Following Statements Is Incorrect