Multiple Choice
In 2014, H Co's times interest earned ratio was 2.51 while T Co's ratio for that year was .80. Which of the following statements is false?
A) H Co.'s ratio shows an extra margin of risk in case profitability deteriorates.
B) T Co's ratio is very low and they present high risk to their creditors and investors.
C) Since H Co's is actively pursuing growth through investment in other companies, its ratio may improve once those investments begin to generate additional net earnings.
D) H Co's ratio appears to provide adequate coverage of interest from its present net earnings.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Kristen's grandmother promises to give her $1,000
Q18: Calculation of the amount of the equal
Q19: You have been asked to compute the
Q20: One thousand bonds with a face value
Q22: In 2014, C Co. reported a times
Q23: When a bond investment is sold (issued)
Q24: The times interest earned ratio uses accrual
Q25: Which of the following statements is true?<br>A)
Q26: On March 1, 20A, Warner Corporation, a
Q67: All long-term note payables are secured.