Which of the Following Ratios Recognizes That Many Firms Lease

question 55

Multiple Choice

Which of the following ratios recognizes that many firms lease rather than buy a long-term asset?

• A)Fixed charge coverage ratio
• B)Times interest earned ratio
• C)Debt ratio
• D)Net profit margin
• E)Equity multiplier ratio

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Definitions:

Jobs

Positions of employment where individuals are compensated for their labor or services by an employer.

Another Country

A term that can refer to a foreign nation or be used to describe a situation or context that is unfamiliar or markedly different from what is known.

Company's Costs

encompass all expenses involved in running a business, including production, operation, and administration expenses.

Low-Income Families

Families whose income is significantly lower than the average, often making it difficult to meet basic living expenses.