Which of the following statements are false?

I. Long-term creditors have an avid interest in the accounts receivable turnover rate.
II. Operating income/Annual interest expense = Interest coverage
III. Operating income/Average total assets = Return on equity

Explanation: I. Short-term creditors' primary interest is the firm's current position, which includes factors such as working capital, accounts receivable turnover rate, inventory turnover rate, operating cycle, current ratio, quick ratio, and unused lines of credit.

II. Interest coverage, or times interest earned, is a common measure of creditors' safety (particularly bondholders).

III. Return on equity is net income expressed as a percentage of average total stockholders' equity. Return on assets is operating income expressed as a percentage of average total assets. The return on assets is a measure of the efficiency with which management utilizes the assets of a business.