Which of the Following Ratios Is the Best Measure in Analyzing

question 110

Multiple Choice

Which of the following ratios is the best measure in analyzing a company's ability to pay interest on long-term debt and to repay the long-term debt over several years?

• A)Debt-to-equity ratio
• B)Times interest earned ratio
• C)Debt service coverage ratio
• D)Acid-test ratio

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Definitions:

Poisoning the Well

A logical fallacy where adverse information about a target is preemptively presented to an audience, with the intention of discrediting or ridiculing everything that the target person is about to say.

Ad Hominem

A fallacy that involves attacking the person making an argument rather than the argument itself.

Fallacy

An erroneous argument or reasoning, often misleading or based on unsound logic.

Ad Hominem

A logical fallacy where an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument rather than addressing the substance of the argument itself.