Coverage Ratios, Like Times Interest Earned and Cash Coverage Ratio

question 48

Multiple Choice

Coverage ratios, like times interest earned and cash coverage ratio, allow

• A) a company's management to assess how well they meet short-term liabilities.
• B) a company's shareholders to assess how well the company will meet its short-term liabilities.
• C) a company's creditors to assess how well the company will meet its interest obligations.
• D) a company's creditors to assess how well the company will meet its short-term liabilities other than interest expense.

---

Definitions:

Narcissistic Personality Disorder

A mental disorder characterized by a long-term pattern of exaggerated self-importance, the need for admiration, and a lack of empathy for others.

Grandiosity

An exaggerated sense of one's importance, power, or abilities, often present in psychiatric conditions.

Self-importance

The overemphasis on one's own worth, abilities, or significance often at the expense of consideration for others or reality.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregarding or violating the rights of others.