Which of the Following Would Not Be Considered in the Fixed

question 36

Multiple Choice

Which of the following would not be considered in the fixed charge coverage ratio?

• A)sinking fund payments
• B)dividend payments
• C)lease payments
• D)all the above are considered in the fixed charge coverage ratio

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Definitions:

Priority Claims

In bankruptcy proceedings, debts that are entitled to be paid before other debts due to their importance as defined by law, such as taxes and employee wages.

Bankruptcy Estate

The collective pool of assets and liabilities that are considered part of a debtor's estate under the bankruptcy code, subject to legal proceedings and distribution.

Secured Claims

are creditor's claims that are protected by a security interest in the assets of the debtor, giving the creditor a right to repossess the collateral if the debtor fails to fulfill the obligations.

Unsecured Claims

Debts or claims for which the creditor does not have any collateral security.