Which Ratio Measures the Number of Dollars of Operating Cash

question 136

Multiple Choice

Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?

• A) times interest earned
• B) fixed-charge coverage ratio
• C) cash coverage ratio
• D) operating coverage ratio

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Definitions:

Depressive Disorders

A range of conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly affecting a person's daily life.

Psychiatrist

A medical doctor specialized in diagnosing, treating, and preventing mental, emotional, and behavioral disorders.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.

Biological Treatment

Medical treatments for mental disorders that affect the brain's chemical environment, including medication and electroconvulsive therapy.