1. The higher the Total Asset Turnover is, the more effective use of the companys investments Total Assets have become. True or False

2. A lower times interest earned ratio indicates that the companys interest expense is low relative to its earnings before interest and taxes. true or false

3. A debt ratio is a measure of how risky it would be for a bank to extend a loan to a company, with a higher ratio indicating great risk. True or false

4.What is the correct formula for Average Collection Period?

'= Number of Days Average Net Receivables / Net Cash Sales

'= Number of Days Average Net Receivables / Net Sales

'= Number of Days Average Net Receivables / Net Income

'= Number of Days Average Net Receivables / Net Credit Sales