Question

"The most commonly used measure to evaluate the ability of a revenue bond issuer to pay interest and repay principal is the ratio of:"

Answer 1

B. Net Revenues / Debt Service

Step-by-step explanation:

For measuring and analyzing the revenue bonds the ratio of Net revenues to the debt ratio is used

The net revenues come from

= Gross revenues - operations & maintenance cost

so for the paying the interest and to pay back the principal amount, the ratio of net revenue and the debt service is used

hence, the correct option is B.