The Ratio That Indicates If a Borrowing Company Will Be

question 70

Multiple Choice

The ratio that indicates if a borrowing company will be able to meet its required interest payments is the

• A) Current ratio
• B) Debt-to-equity ratio
• C) Price-earnings ratio
• D) Times interest earned ratio

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Definitions:

Utilitarianism

A theory in normative ethics holding that the best moral action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Categorical Imperative

A central philosophical concept in the deontological moral philosophy of Immanuel Kant, which asserts that an action is morally right if it can be universally applied as a principle.

Universal Law

A principle or rule that is thought to be applicable to all members of a group or category without exception.

Moral Sentiment

The emotional aspect of morality, including feelings of right and wrong, that influences ethical decision-making.