When Considering Whether an Earnings Coverage Ratio Is Acceptable, Consideration

question 103

Multiple Choice

When considering whether an earnings coverage ratio is acceptable, consideration is least likely to be given to:

• A) earnings variability
• B) earnings persistence
• C) cash flow variability
• D) dividend policy for common stock

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Definitions:

Moderator Variable

A variable that affects the strength or direction of the relationship between an independent and a dependent variable in research.

Objectives

Specific, measurable goals that are established to guide efforts towards achieving broader aims.

Priorities

The ranking of tasks or objectives in order of importance or urgency for the purpose of guiding decision-making or action.

Demands

Demands represent the requirements or needs that individuals or groups expect to be fulfilled.