All of the Following Ratios Reflect Leverage Ratios EXCEPT

question 12

Multiple Choice

All of the following ratios reflect leverage ratios EXCEPT

• A) debt to asset ratio.
• B) times interest earned.
• C) coverage of fixed charges.
• D) price/earnings ratio.
• E) debt to equity ratio.

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Definitions:

Liquidated

The process of converting assets into cash or cash equivalents by selling them in order to pay off debts or obligations.

Claims of Creditors

Rights to payment or other financial assets held by creditors of a business, typically arising from loans or credit extended to the business.

Assets Sold

This refers to items of value owned by a company that have been sold off, including property, equipment, or other resources.

Equity of Partnership

Equity of Partnership represents the ownership interest of each partner in a partnership, essentially the residual interest in the partnership's assets after deducting its liabilities.