In 2012,H Co's Times Interest Earned Ratio Was 2

question 142

Multiple Choice

In 2012,H Co's times interest earned ratio was 2.51 while T Co's ratio for that year was .80.Which of the following statements is false?

• A)H Co's ratio appears to provide adequate coverage of interest from its present profit.
• B)Since H Co's is actively pursuing growth through investment in other companies,its ratio may improve once those investments begin to generate additional profit.
• C)T Co's ratio is very low and they present high risk to their creditors and investors.
• D)None of the responses is false.

---

Definitions:

Conversion Disorder

A mental condition where a person has blindness, paralysis, or other nervous system symptoms that cannot be explained by medical evaluation.

Sensory And Motor

Pertains to the processes related to receiving sensory input and producing motor responses in organisms.

Loss Of Memory

The inability to recall past experiences or learn new information, also known as amnesia.

Multiple Personalities

A dissociative identity disorder characterized by the presence of two or more distinct personality states that control an individual's behavior in different contexts.