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

question 7

Multiple Choice

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

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

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Definitions:

Confidence Interval

An interval of values, obtained through sample statistics, which probably contains the value of an unidentified parameter of the population.

Proficiency Test

An assessment designed to measure an individual's knowledge or competence in a particular area.

Dependent Variable

A variable in an experiment or study whose changes are a result of alterations in one or more independent variables.

Confidence Interval

A spectrum of values, taken from statistical samples, expected to encompass the value of a not yet known population parameter.