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Debt Service Coverage Measures

Question 13

Multiple Choice

Debt service coverage measures


A) The proportion of total assets financed by the owners of the organization
B) How much of total expense the organization devotes to using funds
C) The ability of the organization to meet its an annual interest payments
D) The ability of the organization to meet its annual interest and principle payments
E) The percentage of assets permanently financed by debt and ignores short-term liabilities

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