A Cash Coverage Ratio of Less Than One Indicates

question 111

Multiple Choice

A cash coverage ratio of less than one indicates:

• A) the firm does not have enough cash to make its interest payments.
• B) the firm does have enough cash to make its interest payments, but not its lease obligations.
• C) the firm has too little depreciation expense.
• D) earnings need to fall by only a small amount before interest obligations cannot be covered.

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Definitions:

James Marcia

A developmental psychologist known for his work on adolescent identity formation and the Identity Status Interview method.

Identity Statuses

The various stages of development an individual goes through in the process of forming a stable sense of identity.

Delinquent Behavior

Actions that violate the norms of society or the laws of the land, often associated with juveniles.

Identity Achievement

An identity status that characterizes those who have explored alternatives and have developed commitments.