The times-covered ratio of an organization is determined by current assets divided by current liabilities.

Name: The times-covered ratio of an organization is determined by current assets divided by current liabilities.
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The current ratio (current assets divided by current liabilities)tells managers whether they have the resources available to meet the claims of short-term creditors.The times-covered ratio measures the degree to which managers use debt or equity to finance ongoing operations.

The Times-Covered Ratio of an Organization Is Determined by Current