The Fixed Charge Coverage Ratio Recognises That Firms Often Lease

question 78

True/False

The fixed charge coverage ratio recognises that firms often lease equipment under contract and thus, some firms must meet more than just their scheduled interest payments out of earnings.Therefore, the fixed charge coverage is more inclusive than the TIE ratio.

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Definitions:

Communication Strategy

A plan that outlines how to communicate effectively within an organization or between organizations.

Secrecy And Control

Practices of limiting information access and exerting authority to manage operations or information flow within an organization.

Withhold And Uphold

Refers to the dual act of keeping certain information or actions back while maintaining or defending certain principles or standards.

Communication Strategies

Planned methods and tactics used to convey messages effectively to target audiences.