-IU. PU- The debt to total assets ratio is a measure of and is calculated as liquidity, Total Debt/Total Assets O solvency, Total Assets/Total Debt solvency, Total Debt/Total Assets liquidity, Total Assets/Total Debt In Times Interest Earned is a measure of ---- and is calculated as liquidity, Interest Expense / (Net Income + Interest Expense + Tax Expense) solvency, (Net Income + Interest Expense + Tax Expense) / Interest Expense solvency, Interest Expense / (Net Income + Interest Expense + Tax Expense) O liquidity, (Net Income + Interest Expense + Tax Expense) / Interest Expense 2 in natur Long-term notes payable (e.g., Mortgage Payable) usually require monthly payments which consist of payments for interest and principal O principal and fees Olong term and short term O interest and fees Interest expense on long-term notes payable is higher for earlier payments. True False 73 When bonds are redeemed at a loss, the journal entry requires either a debit or a credit to Loss on Redemption, depending on what is needed to get the journal entry to balance a credit to Loss on Redemption a debit to Loss on Redemption neither a debit nor a credit to Loss on Redemption. When bonds are redeemed at a gain, the journal entry requires neither a debit nor a credit to Gain on Redemption. either a debit or a credit to Gain on Redemption, depending on what is needed to get the journal entry to balance a debit to Gain on Redemption O a credit to Gain on Redemption Any gain or loss on a bond redemption is reported on the Retained Earnings Statement none of the financial statements the Income Statement the Balance Sheet The current ratio is a measure of and is calculated as liquidity, current liabilities/current assets solvency, current assets/current liabilities solvency, current liabilities/current assets liquidity, current assets/current liabilities