Which of the following statements concerning the effective annual rate are correct?

I. Whenlendingand choosing which investment to accept, you should select the offer with the highest effective annual rate

II. The more frequently interest is compounded, the higher the effective annual rate.

III. A quoted rate of 6% compounded per second has a higher effective annual rate than if the rate were compounded daily.

IV. When making financial decisions, you should compare effective annual rates rather than annual percentage rates.

a)I and II only

b)I and IV only

c)I, II, and III only

d)II, III, and IV only

e)I, II, III, and IV

Which of thefollowingwould, generally, indicate animprovementin a company's financial position, holding other things constant?

a.The times-interest-earned ratiodeclines.

b.The days sales outstanding ratioincreases.

c.The quickratioincreases.

d.Thecurrentratio declines.

e.The totalassetsturnover decreases.