Claudia Has Just Come Home from a Long,difficult Day of Writing

question 29

Multiple Choice

Claudia has just come home from a long,difficult day of writing questions for this test.As she sits down on the sofa,her heart rate and breathing slow down,her muscles relax,and her digestive system starts getting ready for food.It appears as though Claudia's ____ has been activated.

• A) thalamus
• B) parasympathetic nervous system
• C) amygdala
• D) somatic nervous system

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Definitions:

Quick Ratio

A liquidity ratio measuring a company's ability to meet short-term obligations with its most liquid assets, excluding inventories.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.