All of the Following Are Financial Leverage Ratios Except the

question 23

Multiple Choice

All of the following are financial leverage ratios except the

• A)current ratio.
• B)cash coverage ratio.
• C)total debt ratio.
• D)times interest earned ratio.
• E)equity multiplier.

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Definitions:

Revenue Recognized

The process of recording income when it is earned and realized or realizable, according to the principles of accounting.

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.

Unrestricted Contribution

Donations or funds given to an organization without any conditions or limitations on their use.