What Does a Coverage Ratio Measure

question 21

Multiple Choice

What does a coverage ratio measure?

• A)The company's ability to pay the interest on its debt
• B)The company's ability to pay the principal amount of its debt
• C)The company's ability to "cover" (pay)its operating expenses
• D)The company's ability to "cover" (meet)shareholder return expectations

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Definitions:

Application Part

A reusable component in Microsoft Access that includes tables, forms, reports, and other database objects, which can be added to a database to fulfill specific functions.

Live Data

Real-time information displayed or processed by a system, reflecting the most current status or updates.

Subform

A form embedded within another form in a database application, used to display and manage related data from a different source or table.

Report

A document that presents data in an organized format, often generated from a database or software application for analysis or information sharing.