Answer the following statements true (T) or false (F)
The asset-liability approach complements the expense-liability approach because the former is applicable to the balance sheet and the latter is applicable to the income statement.
ANSWER: F
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On October 31, 2018, Sterling Construction Company entered into a credit agreement with Comerica Bank. The following appeared among the agreement's financial covenants: "Commencing with the fiscal quarter ending December 31, 2018, maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00." The credit agreement also contained a "definitions" section where this item was listed: " 'Fixed Charge Coverage Ratio' shall mean as of any date of determination a ratio the numerator of which is EBITDA for the Applicable Measuring Period, minus cash taxes and cash tax distributions with respect to such period and the denominator of which is the sum of Current Maturities of Long Term Debt plus interest paid during the trailing twelve month period, plus
twenty-five percent (25%) of the daily average total non-amortizing debt during the trailing twelve month period."Required:a. What is a minimum fixed charge coverage ratio and what purpose does it serve in the company's loan agreements?b. Why is it necessary for the loan agreement to precisely define "Fixed Charge Coverage Ratio?" What will be an ideal response?
“Come to my office to discuss the future” is an example of
a. general language. b. specific language. c. authoritarian language. d. democratic language.
______ is defined as the process of reaching an agreement that both parties find acceptable.
A. Deliberation B. Conciliation C. Negotiation D. Mediation
Social media has created new issues with employee relations, and also increased the number of employers ________
A) encouraging employees to discuss the company on Facebook B) seeking access to social media to monitor activities C) using their social media policies to limit discussions about wages and unionization D) deleting critical social media posts written by employees