The ratio that measures the company's ability to meet required interest payments is the:

A. Price/Earnings ratio.
B. Debt-to-equity ratio.
C. Current ratio.
D. Times interest earned ratio.


Answer: D

Business

You might also like to view...

The cash payments journal would be used to record the following transaction(s):

a. payment of cash for liability insurance. b. payment of invoice for merchandise purchased. c. payment of rent for the month. d. All answers listed are correct.

Business

Andre has a general belief in his own worth, however he has a low belief that he can meet his sales quota. This situation illustrates the difference between ______.

A. high self-esteem and low self-esteem B. intrinsic motivation and extrinsic motivation C. self-esteem and self-efficacy D. high individual difference and low individual difference

Business

The amount of the promissory note plus the interest earned on the due date is called the

A) realizable value B) maturity value C) face value D) net realizable value

Business

A(n) _______ contract is illegal from the beginning and may not be enforced by either party; a(n) _______ contract is legal but permits one party to escape, if he or she so wishes

a. disaffirmed; affirmed b. void; voidable c. affirmed; disaffirmed d. voidable; void

Business