The Cash Debt Coverage Ratio Indicates a Company's Ability to Repay

question 166

True/False

The cash debt coverage ratio indicates a company's ability to repay its liabilities from cash generated from operations.

---

Definitions:

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often its officers or directors, for harm done to the corporation.

Interested Directors

Board members who have a personal, financial, or other direct interest in a matter being considered by the board.

Model Nonprofit Corporation Act

Legislation aimed at providing a blueprint for the governance, structure, and operation of nonprofit corporations, facilitating their management and regulatory compliance.

Inspect Corporate Records

The process of examining the official documents and records of a corporation, such as financial statements and meeting minutes.