From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts?
A: times interest earned ratio
B: cash coverage ratio
C: cash ratio
D: quick ratio
E: Interval measure
A: times interest earned ratio
B: cash coverage ratio
C: cash ratio
D: quick ratio
E: Interval measure
举一反三
- Which of the following is usually least important as a measure of short - term liquidity ______. A: Quick ratio B: Current ratio C: Debt ratio D: Cash flows from operating activities
- Which of the following ratios and rates that measure debt-paying ability focuses on the long-term position of a company? A: Quick ratio B: Inventory turnover C: Current ratio D: Debt ratio
- Which one of the following statements is correct? ( ) A: An increase in the depreciation expense will not affect the cash coverage ratio. B: The debt-equity ratio can be computed as 1 plus the equity multiplier. C: Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. D: If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.
- Magenta Ltd has a current ratio of 1.5, a quick ratio of 0.4 and a positive cash balance. If it purchases inventory on credit, what isthe effect on these ratios?? Current ratio increase and;Quick;ratio increase|Current ratio increase and;Quick;ratio decrease|Current ratio decrease and;Quick;ratio increase|Current ratio decrease and;Quick;ratio decrease
- Typically, which of the following would be considered to be the most indicative of a firm's long-term debt paying ability? A: working capital B: Debt ratio C: acid test D: cash ratio