A Times Interest Earned Ratio of 11 Means That the Company's

question 53

Multiple Choice

A times interest earned ratio of 11 means that the company's:

• A)net income is large enough to pay interest and taxes 11 times.
• B)net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times.
• C)net cash flow from operations is large enough to pay interest and taxes 11 times.
• D)income before taxes and interest is large enough to pay interest 11 times.

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Definitions:

Essential Elements

Nutrients required for organisms to perform vital bodily functions and sustain life, which cannot be synthesized by the organism.

Cohesion-Tension Theory

A theory that explains the movement of water and nutrients from roots to leaves in plants through the cohesive and adhesive properties of water.

Mesophyll

The inner tissue of a leaf, containing chlorophyll where photosynthesis takes place, typically between the upper and lower epidermis.

Casparian Strip

A band of cell wall material found in the roots of plants, impregnated with suberin and lignin, that controls the flow of water and solutes into the xylem.