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What Can a Financial Analyst Learn from Computing the Debt

Question 37

Multiple Choice

What can a financial analyst learn from computing the debt service coverage of a governmental business-type activity?


A) The number of times the debt service is covered by the activity's excess of revenues over expenses
B) The excess of the total net assets over the activity's outstanding long-term debt
C) The number of times the debt service is covered by the activity's current assets
D) The number of times the debt service is covered by the activity's outstanding long-term debt

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