Match each definition that follows with the term (a-h) it defines.
-Measures the risk that interest payments will not be made if earnings decrease
A)Solvency
B)Leverage
C)Times interest earned
D)Horizontal analysis
E)Vertical analysis
F)Common-sized financial statements
G)Current position analysis
H)Profitability analysis

Question

Quizplus · Accepted Answer

This definition describes the ratio known as "times interest earned," which measures a company's ability to meet its interest payments.

Match Each Definition That Follows with the Term (A-H) It