In 2012,C Co

question 118

Multiple Choice

In 2012,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)P Co.and C Co.have more than adequate ratios demonstrating their ability to cover interest charges with their earnings levels.
• B)C Co's ratio is about 11.3% higher than P Co's ratio.
• C)C Co.is more liquid than P.Co.
• D)Lenders would be pleased with the ratios of both companies and be willing to lend them money for future expansion.

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Definitions:

Importance

the significance or value attached to something based on its relevance or impact.

Sherman Act

A foundational United States antitrust law enacted in 1890 to prohibit monopolies and practices that restrained trade and competition.

1890

A year significant in economic history, notably for the Sherman Antitrust Act's passage in the United States to combat anti-competitive practices.

Major Features

Principal characteristics or components that distinguish something from others.