If the Times Interest Ratio

question 191

Multiple Choice

If the times interest ratio:

• A)Increases,then risk increases.
• B)Increases,then risk decreases.
• C)Is greater than 1.5,then the company is in default.
• D)Is less than 1.5,the company is carrying too little debt.
• E)Is greater than 1.5,the company is likely carrying too much debt.

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated or changed to observe its effect on dependent variables.

Dependent Variables

In research, these are the variables that are studied to see if they change as a result of alterations in other variables (independent variables).

Detect

To discover or identify the presence of something concealed or subtle.

Salary Negotiations

The process of discussing and agreeing on the compensation package for a job position between an employer and employee.