Which of the Following Accounting Ratios Considers the Importance of Cash

question 50

Multiple Choice

Which of the following accounting ratios considers the importance of cash flows relating to required interest payments?

• A)times interest earned ratio
• B)debt/equity ratio
• C)cash coverage ratio
• D)receivables turnover

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Definitions:

Fate

A predetermined course of events often considered to be beyond human control.

Sensation Seeking

A personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense, and by the readiness to take physical, social, legal, and financial risks for the sake of such experiences.

Decline With Age

Refers to the natural decrease in physical, cognitive, and functional abilities as individuals become older.

Sensation Seeking

A personality trait characterized by a preference for experiences that are varied, novel, complex, and intense, and the willingness to take physical, social, legal, and financial risks for the sake of such experiences.