The Difference Between a Venture's Ability to Generate Cash to Pay

question 10

Multiple Choice

The difference between a venture's ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?

• A) fixed charges coverage
• B) debt to asset
• C) equity multiplier
• D) debt to equity
• E) interest coverage

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Definitions:

Desired Performance

The level of work output or outcome that an organization aims to achieve through its employees or systems.

Knowledge

Information, understanding, and skills acquired through experience or education.

Action

The act or process of doing something, typically to achieve an aim or to enact something.

Spreadsheet Software

A computer application used for the organization, analysis, and storage of data in tabular form, often featuring calculation, graphing, and pivot table functions.