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.

Question

Quizplus · Accepted Answer

The Answer of 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.

All of the Following Are True Regarding Financial Statement Analysis