Which of the Following Ratios Is Considered a Measure of a Company's

question 22

Multiple Choice

Which of the following ratios is considered a measure of a company's ability to pay interest on long-term debt?

• A) price/earnings ratio
• B) acid-test ratio
• C) times-interest-earned ratio
• D) earnings per common share

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Definitions:

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.

Testable

Describing a hypothesis or theory that can be examined through experimentation or observation to determine its validity.

Well Established

Something that is firmly grounded, widely recognized, and reputable in its field or area.

Emotional Disorders

Mental health conditions that affect a person's mood, thinking, and behavior, often characterized by excessive or inappropriate emotions.