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

question 50

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:

Discrimination Coefficient

A measure used in economics to quantify the extent to which individuals or groups are treated differently, often in the context of market transactions or employment.

Wage Rate

The amount of compensation a worker receives in exchange for their labor, typically expressed per hour or year.

African-American Workers

Refers to the labor force segment consisting of workers who are identified as African-American or Black, focusing on their employment conditions, challenges, and contributions.

Earned-Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, aimed at encouraging work and reducing poverty.