Which of the Following Is Most Likely a Sign That

question 42

Multiple Choice

Which of the following is most likely a sign that a company has solvency or liquidity problems?

• A) A current ratio is low compared to other companies in the industry.
• B) An interest coverage ratio is high compared to other companies in the industry.
• C) A ratio of debt to equity that low compared to other companies in the industry.
• D) A capital structure leverage ratio is low compared to other companies in the industry.

---

Definitions:

Sella Turcica

A saddle-shaped depression in the sphenoid bone at the base of the human skull that houses the pituitary gland.

Sphenoid Bone

A butterfly-shaped bone at the base of the skull that is connected to all other skull bones.

Hyoid

A U-shaped bone in the neck that supports the tongue and provides attachment for muscles associated with swallowing.

Crista Galli

A vertical protrusion of the ethmoid bone in the brain that serves as an attachment point for the falx cerebri, a membrane that divides the two cerebral hemispheres.