Question $1$

Which of the following statements is correct?

Coverage ratios describe the quantity of funds available to "cover" certain expenses, particularly interest

expense though this is not the only one.

LTD to Equity $=$ Long Term Debt $/$ Total Assets.

All the answers are correct.

The current ratio will always be less than the quick ratio, unless the firm has no inventory.

Total Debt Ratio $=$ Total Assets $\frac{?}{?}$ Total Liabilities.