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Author Question: Juanita has the following three ratios: 1. debt service coverage = 2.5, 2. debt ratio = 0.5, and 3 . ... (Read 123 times)

mpobi80

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  • Posts: 519
on: Jul 11, 2018
Juanita has the following three ratios: 1. debt service coverage = 2.5, 2. debt ratio = 0.5, and 3 . liquidity ratio = 0.8. We can say that Juanita has
 
  A)
 
  poor solvency and poor liquidity.
  B)
 
  strong solvency and strong liquidity.
  C)
 
  strong liquidity but poor solvency.
  D)
 
  strong solvency but poor liquidity.

Question 2

Which of the following statements about the extra expense coverage form is (are) true?
 
  I. It provides coverage for the increased cost that must be paid to continue operations during a period of restoration.
  II. It provides coverage for lost business income if a key customer or key supplier experiences a loss.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II


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joewallace

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

Answer: A


mpobi80

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)

chjcharjto14

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Reply 3 on: Yesterday
Excellent

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