From a Cash Flow Position,which One of the Following Ratios

question 31

Multiple Choice

From a cash flow position,which one of the following ratios best measures a firm's ability to pay the interest on its debts?

• A)Times interest earned ratio
• B)Cash coverage ratio
• C)Cash ratio
• D)Quick ratio
• E)Interval measure

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Definitions:

Probability

A statistical metric that indicates the extent of the chance of an event taking place, expressed within the range from 0 (no chance) to 1 (absolute certainty).

Binomial Probability Experiment

An experiment or process that has exactly two possible outcomes (success or failure) for each trial and where the probability of success is the same for each trial.

Probability

The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Standard Normal Distribution

A standard normal distribution characterized by a mean of 0 and a standard deviation of 1.