Which of the following statements about accounting ratios and their interpretation are correct? 1 A low-geared company is more able to survive a downturn in profit than a highly-geared company. 2 If a company has a high price earnings ratio, this will often indicate that the market expects its profits to rise. 3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1. A 2 and 3 only B 1 and 3 only C 1 and 2 only D All three statements are correct C |