All of the Following Are True Regarding Financial Statement Analysis

Multiple Choice

All of the following are true regarding financial statement analysis ratios associated with liabilities except

A) a high times interest earned ratio indicates that a company is more likely to meet interest payments as scheduled.
B) high liquidity ratios mean that lines of credit should be high to compensate.
C) if a company's current ratio is lower than the industry average, then it may lack liquidity.
D) unrecorded obligations causing sizeable differences between liquidity and solvency ratios can be ignored.