Interest Coverage Ratio Is a Measure of

question 17

Multiple Choice

Interest coverage ratio is a measure of

• A) how much debt a company carries.
• B) income after taxes and interest divided by interest expense.
• C) stockholders' control.
• D) protection from default on interest.

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Definitions:

Standard Of Living

The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Goods And Services

The outputs offered by businesses and the economy to satisfy individual or collective needs or wants.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Physical Capital

The stock of tangible, non-financial assets that are used in the production of goods and services, such as machinery and buildings.