22. Which of the following is a measure of Debt Service capacity of a firm?

(a)Current Ratio, (b)Acid Test Ratio,(c) Interest Coverage Ratio,(d) Debtors Turnover.

23. Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for such behavior could be:

(a) Increase in Costs of Goods Sold, (b)If Increase in Expense,(c) Increase in Dividend,(d)Decrease in Sales.

24. Which of the following statements is correct?

(a) A Higher Receivable Turnover is not desirable, (b) Interest Coverage Ratio depends upon Tax Rate,

(c)Increase in Net Profit Ratio means increase in Sales, (d) Lower Debt-Equity Ratio means lower Financial Risk.