Which of the following statements is not true? a) The return on shareholders’ funds can be calculated as profit after tax / total equity x 100 b) The dividend cover ratio can be calculated from the Income statement and the statement of cash flows and the answer will be the same c) The interest cover ratio can be calculated from the income statement and the statement of cash flows and the answer will be different d) The operating profit margin is also called the net profit margin
Which of the following statements is not true? a) The return on shareholders’ funds can be calculated as profit after tax / total equity x 100 b) The dividend cover ratio can be calculated from the Income statement and the statement of cash flows and the answer will be the same c) The interest cover ratio can be calculated from the income statement and the statement of cash flows and the answer will be different d) The operating profit margin is also called the net profit margin
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 32MCQ
Related questions
Question
Q . Which of the following statements is not true?
a) The return on shareholders’ funds can be calculated as profit after tax /
total equity x 100
b) The dividend cover ratio can be calculated from the Income statement and
the statement of
c) The interest cover ratio can be calculated from the income statement and
the statement of cash flows and the answer will be different
d) The operating profit margin is also called the net profit margin
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning