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:

Pooled Secretions

Accumulation of bodily fluids, typically mucus or saliva, in parts of the body, which can pose a risk of infection or other complications.

Hypocarbia

A condition marked by reduced levels of carbon dioxide in the blood, usually due to excessive breathing.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, important for maintaining physical fitness and health.

Muscle-strengthening

Physical exercises designed to improve muscle strength, endurance, and mass.