The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of ________ ratio.
A)current
B)liquidity
C)leverage
D)activity
E)profit

Question

Quizplus · Accepted Answer

The times-covered ratio is a type of leverage ratio, as it assesses a company's ability to meet its debt obligations by comparing earnings to interest expenses.

The Times-Covered Ratio, Which Measures the Degree to Which Managers