Which of the Following Statements About the Capital Acquisitions Ratio

Which of the following statements about the capital acquisitions ratio is incorrect?

A) The ratio is computed by dividing cash flow from operations 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) It increases when an account receivable is collected.