Which of the following does not accurately apply to the various types of capital gearing?
A) They vary in the degree to which they reflect historical or current value of assets.
B) They all have values of between zero and 100 per cent.
C) They vary in the degree to which they include short- term and long- term debt.
D) They all measure the extent to which the capital structure consists of debt.

Question

Quizplus · Accepted Answer

The various types of capital gearing do not all have values of between zero and 100 per cent. For example, interest coverage ratio can have a value greater than 100% if earnings before interest and taxes are more than twice the amount of interest expense.

Which of the Following Does Not Accurately Apply to the Various