The Earnings to Fixed Charges Ratio

question 8

Multiple Choice

The earnings to fixed charges ratio:

• A) indicates how efficiently assets are used
• B) typically includes depreciation in the denominator
• C) typically excludes extraordinary gains and losses from the numerator
• D) indicates the proportion of debt used to finance the company

---

Definitions:

Statute Violation

An act that breaks a specific statute law, which can be either a criminal or civil law, established by a legislative body.

Exculpatory Clause

A contract provision that releases one party from liability for harm or damages that might arise under the agreement.

Legalese

Specialized language used in the legal profession, characterized by complex sentences and technical terminology.

Conspicuous Print

Text in a document that is designed to be noticeably visible or attention-grabbing to ensure that it is read.