Solved

Coverage Ratios, Like Times Interest Earned and Cash Coverage Ratio

Question 110

Multiple Choice

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


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions