What Happens If Lease Payments Are Reduced

question 63

Multiple Choice

What happens if lease payments are reduced?

• A) Times interest earned goes up.
• B) Fixed charge coverage goes up.
• C) Fixed charge coverage stays the same.
• D) Fixed charge coverage goes down.

---

Definitions:

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Tax Revenue

The income collected by governments from taxes, which funds public services such as infrastructure, healthcare, and education.

Cheesecake

A sweet dessert consisting of one or more layers, with the main and thickest layer containing a mixture of soft, fresh cheese, eggs, and sugar.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.