If the Cash Coverage Ratio Exceeds the Times Interest Earned

question 51

Multiple Choice

If the cash coverage ratio exceeds the times interest earned ratio,then the firm has:

• A) a positive cash flow.
• B) depreciable assets.
• C) no long-term debt.
• D) short-term debts.

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Definitions:

Civil Law Systems

Legal systems derived from Roman law, characterized by comprehensive legislative codes and principles that guide legal decision making, as opposed to common law systems.

Roman Empire

An ancient civilization centered around the Mediterranean, leading in law, politics, engineering, and warfare until its decline.

Stare Decisis

A legal principle that dictates that courts are bound by their own earlier decisions and the decisions of higher courts when the same points arise again in litigation.

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Actions or laws that violate the principles or specific provisions of the Constitution.