Examlex

Solved

The Interest Coverage Ratio Measures the Degree of Protection a Company

question 108

True/False

The interest coverage ratio measures the degree of protection a company has from default on interest payments.


Definitions:

Revaluation

An adjustment of the value of an asset to reflect its current market value rather than its cost value.

Useful Life

The estimated period over which an asset is expected to be usable by a company before it is fully depreciated.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Installation Costs

Expenses associated with putting fixed assets into operation, including the costs of setting up, assembling, and installing the assets.

Related Questions