Which of the following statements is correct?
A) A firm's quick ratio can never exceed its current ratio.
B) An increase in a firm's debt ratio will increase its equity multiplier.
C) If a firm has no lease payments or sinking fund payments, its fixed charge coverage ratio will equal its times-interest-earned ratio.
D) Statements b and c are correct.
E) All of the statements above are correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) A firm's quick ratio can never exceed its current ratio.
B) An increase in a firm's debt ratio will increase its equity multiplier.
C) If a firm has no lease payments or sinking fund payments, its fixed charge coverage ratio will equal its times-interest-earned ratio.
D) Statements b and c are correct.
E) All of the statements above are correct.

Which of the Following Statements Is Correct