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Which of the Statements Below Is FALSE

Question 35

Multiple Choice

Which of the statements below is FALSE?


A) When the current ratio is greater than 1,we are also saying that net working capital is positive as current assets are greater than current liabilities.
B) Financial leverage ratios deal with long-term solvency and the use of debt as a financing tool.
C) The debt ratio is total assets minus total equity divided by equity.
D) Times interest earned equals EBIT divided by interest expense.

Correct Answer:

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