If the Times Interest Ratio

question 191

Multiple Choice

If the times interest ratio:

• A)Increases,then risk increases.
• B)Increases,then risk decreases.
• C)Is greater than 1.5,then the company is in default.
• D)Is less than 1.5,the company is carrying too little debt.
• E)Is greater than 1.5,the company is likely carrying too much debt.

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Definitions:

Evolution

The process through which species of organisms undergo changes over time through genetic variation and natural selection.

Cellular Respiration

A set of metabolic processes that take place within cells to convert biochemical energy from nutrients into ATP, and then release waste products.

Photosynthesis

The process by which green plants, algae, and certain bacteria convert light energy, water, and carbon dioxide into oxygen and glucose.

Carbon Dioxide

An invisible, unscented gas generated through the combustion of carbon-based and organic materials, as well as by the respiration process, which is consumed by plants during photosynthesis.