Which of the Following Indicates the Margin of Safety Provided

question 155

Multiple Choice

Which of the following indicates the margin of safety provided to creditors?

• A) Rate of return on shareholders' equity.
• B) Times interest earned ratio.
• C) Gross margin.
• D) Debt to equity ratio.

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Definitions:

Korean War

A conflict between North Korea (with the support of China and the Soviet Union) and South Korea (supported by the United Nations, primarily the United States) from 1950 to 1953, part of the early Cold War period.

Presidency Powers

The duties, responsibilities, and powers granted to the President of the United States by the Constitution, including serving as the head of state and government, commander-in-chief of the armed forces, and the power to sign or veto legislation.

Congress Powers

The authorities granted to the legislative body of the United States, including creating laws, declaring war, and regulating commerce.