Use the following statements to answer this question:
A) I and II are correct.
B) I and II are incorrect.
C) I is incorrect and II is correct.
D) I is correct and II is incorrect.
I.The debt rating is supposed to fluctuate with the economic cycle.
II.Balance sheet strength refers to the ability of the firm to cover its liabilities.

Question

Quizplus · Accepted Answer

Statement I is incorrect because debt ratings are generally expected to remain stable and not fluctuate with the economic cycle. Statement II is correct as balance sheet strength indeed refers to the firm's ability to cover its liabilities.

Use the Following Statements to Answer This Question