Which of the accounting ratios considers the importance of cash flows relating to required interest payments?
A)Times interest earned.
B)Debt-to-equity.
C)Cash coverage.
D)Quick.

Question

Quizplus · Accepted Answer

The cash coverage ratio is used to determine a company's ability to pay its debts, specifically in terms of interest payments. The ratio considers the importance of cash flows relating to required interest payments.

Which of the Accounting Ratios Considers the Importance of Cash