Which of the Following Statements Regarding the Debt Servicing Capacity

question 66

Multiple Choice

Which of the following statements regarding the debt servicing capacity of a company is incorrect?

• A) The debt to gross cash flow ratio is an indicator of debt servicing capacity.
• B) The debt to gross cash flow ratio indicates years required for cash flows to repay total debt.
• C) The interest cover ratio is an indicator of a company's capacity to service debt.
• D) The lower the interest cover ratio, the greater the company's ability to cover interest commitments.

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Definitions:

Gender Bias

A predisposition or inclination that leads to unfair treatment or judgement based on an individual's gender.

Linguistic Style

The unique way in which an individual uses language, including choice of words, tone, pace, and use of metaphors, which can influence communication and perception in social interactions.

Gender Discrimination

Unjust treatment or considerations based on an individual's sex, often resulting in inequality in opportunities, resources, and rights.

Managerial Positions

Job roles that involve overseeing and directing the operations, strategy, and employees within a section, department, or organization.