Multiple Choice
In 2012,C Co.reported a times interest earned ratio of 12.33 times while P Co.reported a ratio of 11.07 times.Which of the following statements is false?
A) P Co.and C Co.have more than adequate ratios demonstrating their ability to cover interest charges with their earnings levels.
B) C Co's ratio is about 11.3% higher than P Co's ratio.
C) C Co.is more liquid than P.Co.
D) Lenders would be pleased with the ratios of both companies and be willing to lend them money for future expansion.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A reciprocal relationship exists between the "future
Q90: Pleasant Company has established a pension plan
Q113: Kristen's grandmother promises to give her $1,000
Q114: A $500,000 bond was retired at 97
Q115: If bonds have been issued at a
Q116: In 2012,The W D Co.had total liabilities
Q117: Deany Company issued $100,000 bonds.The stated rate
Q119: A characteristic of a callable bond is
Q122: A long-term note may be secured by
Q123: Zero coupon bonds do not pay interest