If the Cash Coverage Ratio Exceeds the Times Interest Earned

question 51

Multiple Choice

If the cash coverage ratio exceeds the times interest earned ratio,then the firm has:

• A) a positive cash flow.
• B) depreciable assets.
• C) no long-term debt.
• D) short-term debts.

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Definitions:

Violet

A color at the end of the visible spectrum of light, next to blue, and opposite of yellow.

Blue

A primary color perceived when the retina senses light in the wavelength range of approximately 450–495 nanometers.

Phosphoglyceraldehyde

A three-carbon sugar phosphate molecule that plays an important role in several biochemical pathways, including glycolysis and the Calvin cycle.

Photosynthetic Pathway

The series of chemical reactions in plants that convert carbon dioxide and water into glucose and oxygen, using sunlight as the energy source.