In 2014, C Co

question 22

Multiple Choice

In 2014, C Co. reported a times interest earned ratio of 12.33 times while P Co. reported a ratio of 11.07 times. Which of the following statements is false?

• A) C Co. is more liquid than P. Co.
• B) Lenders would be pleased with the ratios of both companies and be willing to lend them money for future expansion.
• C) P Co. and C Co. have more than adequate ratios demonstrating their ability to cover interest charges with their earnings levels.
• D) C Co's ratio is about 11.3% higher than P Co's ratio.

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Definitions:

Challenge Stressor

A type of stressor that, although demanding, is perceived positively because it contributes to personal growth or achievement.

Motivated

Having a strong desire and willingness to achieve something.

Adrenaline

A hormone and neurotransmitter released in response to stress, increasing heart rate, and energy as part of the fight or flight response.

Illness

A condition that affects an individual's physical or mental health, often characterized by specific symptoms and requiring medical attention or care.