Which Ratio Measures the Number of Dollars of Operating Earnings

question 49

Multiple Choice

Which ratio measures the number of dollars of operating earnings available to meet the firm's interest dollars and other fixed charges?

• A) times interest earned
• B) basic earning power
• C) fixed-charge coverage ratio
• D) ROA

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Definitions:

Negative Reinforcement

A behavioral technique in which the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated.

Wearout

The diminishing returns in effectiveness or impact of an advertisement or message over time due to repeated exposure, leading to boredom or annoyance in the audience.

Extinction

In behavioral psychology, the process by which a previously learned behavior decreases in frequency or disappears due to the removal of reinforcement.

Hedonistic Consumption

The pursuit of pleasure and sensory gratification from the consumption of goods and services.