Which Ratio Measures the Number of Dollars of Operating Cash

question 136

Multiple Choice

Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?

• A) times interest earned
• B) fixed-charge coverage ratio
• C) cash coverage ratio
• D) operating coverage ratio

---

Definitions:

Specialization In Manufacturing

The process of focusing production on a limited scope of products or tasks to gain efficiency and improve expertise.

American Cities

Urban areas in the United States that serve as centers of population, culture, economy, and political activities.

The Car

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor, essential to modern society for personal mobility and freight transport.

The Railroad

A mode of land transportation that uses a track of rails for trains to travel on, significantly transforming economies and societies worldwide since the 19th century.