Which of the following statements is true ?

[A] Rate of return on capital is Acid Test Ratio

[B] Equity capital to fixed interest- bearing securities is a turnover ratio

[C] Capital gearing is the ratio of equity capital to fixed-interest bearing securities.

[D] Input and output ratio is a measure of profitability

Answer & Explanation
Answer: Capital gearing is the ratio of equity capital to fixed-interest bearing securities.

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