Which of the Following Statements Is Correct

question 99

Multiple Choice

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.

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Definitions:

Innovation Efforts

Initiatives and activities aimed at developing new products, improving processes, or creating novel solutions to meet market needs.

Regional Centers

Designated areas or institutions that provide specialized services or resources concentrated in a particular geographic area, often for economic or educational purposes.

Emerging Markets

Countries moving toward economic policies of open trade and free markets.

Trademark

Legal protection of a recognizable brand name, design, or logo that calls a specific product to a consumer’s mind.