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Question
all of the following are true regarding financial statement analysis ratios associated with liabilities except
a.a high times interest earned ratio indicates that a company is more likely to meet interest payments as scheduled
b.high liquidity ratios mean that lines of credit should be high to compensate
c.if a company's current ratio is lower than the industry average, then it may lack liquidity
d.unrecorded obligations causing sizeable differences between liquidity and solvency ratios can be ignored
Answer
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