Which of the Following Is Correct

question 40

Multiple Choice

Which of the following is correct?

• A)The times interest earned ratio is considered a better test of the ability to cover interest charges than the cash coverage ratio.
• B)The debt-to-equity ratio shows the relative proportion of total assets financed by debt.
• C)The higher the debt-to-equity ratio,the higher the potential return to the stockholders,but also the higher risk to stockholders.
• D)The cash coverage ratio compares the cash generated by a company to its cash obligations for the prior period.

---

Definitions:

Right-to-Work Laws

Legislation that prohibits union security agreements, or agreements between employers and labor unions, that govern the extent to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment.

Labor Unions

Organizations that represent the interests of employees in negotiations with employers over issues like wages, working conditions, and benefits.

Traditional Institutions

Established societal structures and organizations that uphold conventional practices and norms.

1920s

A decade characterized by economic prosperity and cultural flourishing in the United States, often referred to as the "Roaring Twenties."