If Moon Corporation Has Depreciation or Amortization Expense,which of the Following

question 77

Multiple Choice

If Moon Corporation has depreciation or amortization expense,which of the following is TRUE?

• A)Its EBITDA/Interest Coverage ratio will be greater than its EBIT/Interest Coverage ratio.
• B)Its EBITDA/Interest Coverage ratio will be less than its EBIT/Interest Coverage ratio.
• C)Its EBITDA/Interest Coverage ratio will be equal to its EBIT/Interest Coverage ratio.
• D)Not enough information to answer the question.

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Definitions:

Continuity

The concept that certain processes or developments occur in a smooth, uninterrupted manner over time.

Proximity

Nearness in space, time, or relationship.

Similarity

The state of being alike or sharing common features, used in various contexts to describe resemblance or equivalence between entities.

Closure

The psychological need to seek resolution and a sense of completeness or finality in our perceptions and relationships.