Given what you know about the differences in conservatism between the US and UK, which of the following statements is most accurate? Answer a. return on equity and the debt/equity ratio would u

Given what you know about the differences in conservatism between the US and UK, which of the following statements is most accurate?

Answer

a.

return on equity and the debt/equity ratio would usually be lower under UK GAAP than it would be under US GAAP

b.

return on equity would usually be higher and the debt/equity ratio lower under UK GAAP than under US GAAP

c.

return on equity would usually be lower and the debt/equity ratio higher under UK GAAP than under US GAAP

d.

return on equity and the debt/equity ratio would usually be higher under UK GAAP than under US GAAP

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