Question: Question 6 2 pts How does the Cash Coverage ratio differ from the Times Interest Earned ratio? The Cash Coverage ratio is used for short
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pts
How does the Cash Coverage ratio differ from the Times Interest Earned ratio?
The Cash Coverage ratio is used for shortterm analysis, while the TIE ratio is used for longterm analysis.
The Cash Coverage ratio includes depreciation in its calculation, providing a more cashfloworiented measure.
The Cash Coverage ratio is always lower than the TIE ratio.
The Cash Coverage ratio only considers longterm debt, while the TIE ratio includes all interest expenses.
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