Which of the Following Ratios Is the Best Measure in Analyzing

question 110

Multiple Choice

Which of the following ratios is the best measure in analyzing a company's ability to pay interest on long-term debt and to repay the long-term debt over several years?

• A)Debt-to-equity ratio
• B)Times interest earned ratio
• C)Debt service coverage ratio
• D)Acid-test ratio

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Definitions:

Conversion Disorder

A somatoform disorder in which a person suffers a loss of motor or sensory functioning in some part of the body; the loss has no physical cause but solves some psychological problem.

Social Phobias

Intense fear of social situations, leading to significant anxiety and avoidance of social interaction.

Specific

Distinct or particular to something or someone, as opposed to being general or vague.

Interactive

Involving communication or direct involvement with someone or something, which changes or has an effect upon contact.