As a result of extraordinary losses during the year, the number of times bond interest earned ratio decreased from 4.5 times to 1.5 times. This change is indicative of increasing financial strength.

Question

Quizplus · Accepted Answer

The decrease in the number of times bond interest earned ratio from 4.5 times to 1.5 times signifies a decrease in financial strength, not an increase. A higher ratio indicates a company's ability to meet its debt obligations, while a lower ratio suggests that the company may struggle to make interest payments on its outstanding debt. Therefore, option B is the correct answer.

As a Result of Extraordinary Losses During the Year, the Number