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t K The managers of Regan plc discovered that the repayment of a short-term loan during the year had been treated in error as interest
t K The managers of Regan plc discovered that the repayment of a short-term loan during the year had been treated in error as interest charges. This discovery was made after the draft annual financial statements had been prepared and after the managers had calculated the following ratios based on these statements: 1. Operating profit margin 2. Acid-test ratio 3. Sales revenue per employee 4. Price/earnings ratio Which two of the above ratios will change after the error has been corrected in the financial statements? OA. 2 and 4 OB. 3 and 4 C. 1 and 3 OD 1 and 2 That's incorrect. There is no effect on the gross profit ratio, consider the effect on profit and try again. X
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