Which of the Statements Below Is FALSE

question 2

Multiple Choice

Which of the statements below is FALSE?

• A)The cash coverage ratio is EBIT plus depreciation divided by interest expense.
• B)Times interest earned equals EBIT divided by interest expense.
• C)The times interest earned ratio tells us the number of times a company has resorted to debt financing over the year.
• D)The debt ratio basically tells us the amount in debt for every dollar of assets.

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Definitions:

Tropical Fish

Fish species that live in the equatorial waters, characterized by vibrant colors and diverse species.

Omnivorous

Omnivorous describes organisms that eat both plant and animal materials as part of their diet.