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 corr

C