Which of the Statements Below Is FALSE

question 80

Multiple Choice

Which of the statements below is FALSE?

• A)When the current ratio is greater than 1,we are also saying that net working capital is positive as current assets are greater than current liabilities.
• B)Financial leverage ratios deal with long-term solvency and the use of debt as a financing tool.
• C)The debt ratio is total assets minus total equity divided by equity.
• D)Times interest earned equals EBIT divided by interest expense.

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