Nelson Industries has a higher debt ratio than Butler, Inc., and ...

[anjilletteb]

Nelson Industries has a higher debt ratio than Butler, Inc., and Nelson also has a higher times
  interest earned ratio than Butler. If Nelson and Butler both have the same amount of total assets,
  then
 
  A) Nelson may have more non-interest bearing liabilities, such as accounts payable, than Butler
  has.
  B) if both companies have the same operating income, Butler must be paying a higher interest
  rate on its long-term debt than Nelson is paying.
  C) Nelson must have higher operating income than Butler.
  D) if both companies have the same operating income, a mistake was made in the calculations
  because the company with a higher debt ratio must have a lower times interest earned ratio.

Question 2

Which of the following persons is (are) eligible for benefits under medical payments to others (Coverage F) of the homeowners policy?
 
  I. A friend who slips and falls on a wet patio while visiting the named insured
  II. A neighborhood child who is severely scratched by a cat in the care of the named insured
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

[bitingbit]

Answer to Question 1

A

Answer to Question 2

Answer: C