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P2 C5 ACCOUNTNG RATIOS AND ANALYSIS — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C5 ACCOUNTNG RATIOS AND ANALYSIS1 Mark
Question
Which is better out of high interest coverage ratio and low interest coverage ratio?
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Answer

High interest coverage ratio is more better because it shows payment capacity of interest of the business.

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