The___________ Ratio May Indicate That the Firm Will Not Be

question 66

Multiple Choice

The___________ ratio may indicate that the firm will not be able to meet interest obligations due on outstanding debt.

• A) return on total assets
• B) times interest earned
• C) debt
• D) net profit margin

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Definitions:

Vapor

Gaseous phase of a substance that is generally a liquid or solid at room temperature.

Solute

A substance dissolved in another substance, typically the component of a solution present in the lesser amount.

Solvent

A substance that dissolves a solute, resulting in a solution; solvents are often liquids but can also be solid or gas.

Vapor Pressure

The pressure exerted by the vapor of a liquid (or solid) at equilibrium with its condensed phases at a given temperature in a closed system.