If a Firm's Cash Coverage Ratio Is Greater Than Its

question 12

Multiple Choice

If a firm's cash coverage ratio is greater than its times interest earned ratio,then the:

• A) firm's assets are not fully depreciated.
• B) firm has no lease obligations.
• C) firm has very little long-term debt.
• D) firm has a high degree of liquidity.

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Definitions:

21st and 22nd Centuries

The periods of time spanning from 2001 to 2100 and 2101 to 2200, respectively, in the Gregorian calendar.

Supremacy Clause

A clause in the U.S. Constitution declaring that federal law takes precedence over state law if there is a conflict between them.

Federal Law

Federal law refers to the body of law created by the national government of a country, which applies to the entire country and takes precedence over state or local laws.

State Law

The body of law enacted by the legislative bodies of individual states, governing within their respective jurisdictions.