Post ACC305 Unit 5 Chapter 7 Quiz

• Question 1

0 out of 1 points

All but which of these ratios are considered to be debt ratios?

• Question 2

1 out of 1 points

In computing the debt ratio, which of the following is subtracted in the denominator?

• Question 3

0 out of 1 points

Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective?

• Question 4

1 out of 1 points

In computing debt to tangible net worth, which of the following is not subtracted in the denominator?

• Question 5

1 out of 1 points

Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to

• Question 6

5 out of 5 points

Match the five ratios with their formulas.

o

Question

times interest earned

fixed charge coverage

debt ratio

debt/equity ratio

debt to tangible net worth

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All Answer Choices

A.

Total Liabilities

Shareholders' Equity - Intangible Assets

B.

Total Liabilities

Total Assets

C.

Recurring Earnings, Excluding

Interest Expense, Tax Expense,

Equity Earnings, and Minority Expense

Interest Expense, Including

Capitalized Interest

D.

Recurring Earnings, Excluding

Interest Expense, Tax Expense,

Equity Earnings, and Minority Earnings

+ Interest Portion of Rentals

Interest Expense, including

Capitalized Interest + Interest

Portion of Rentals

E.

Total Liabilities

Shareholders' Equity

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