Which Financial Ratio Is a Measure of the Ability of the Company

question 4

Multiple Choice

Which financial ratio is a measure of the ability of the company to meet all of its fixed-charge obligations?

• A) debt to asset ratio
• B) debt to equity ratio
• C) times interest earned
• D) long-term debt to capital structure
• E) coverage of fixed charges

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Definitions:

Inventory Control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

Physical Distribution

All the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling.

Transportation

The shipment of products to buyers.

Warehousing

The design and operation of facilities to receive, store, and ship products.