The Higher the Value of ________ Ratio, the Better Able

question 56

Multiple Choice

The higher the value of ________ ratio, the better able the firm is to fulfill its interest obligations.

• A) debt
• B) average collection period
• C) times interest earned
• D) average payment period

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Definitions:

Relatively Elastic

Describes a supply or demand curve in economics that shows a greater sensitivity or responsiveness to changes in price.

Price-Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

Price-Inelastic

Describes a situation where the demand for a product does not change significantly with a change in the product's price.

Coefficient

A constant or numerical value that precedes and multiplies a variable within an algebraic expression.