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

question 12

Multiple Choice

If a firm's cash coverage ratio is greater than its times interest earned ratio,then the:

• A) firm's assets are not fully depreciated.
• B) firm has no lease obligations.
• C) firm has very little long-term debt.
• D) firm has a high degree of liquidity.

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Definitions:

Totals Row

A row at the end of a table or spreadsheet that provides summation, average, count, or other aggregate functions of the data in each column.

Calculated Field

A field in databases or spreadsheets that performs a calculation using values from other fields.

Make-Table Query

A type of query in database applications used to create a new table from the results of a select query.

Parameter Query

A type of database query that requires the user to provide one or more criteria values upon which the search is based, making the query flexible and interactive.