Money Available to a Household Over and Above What Is

question 42

Multiple Choice

Money available to a household over and above what is required to have a comfortable standard of living is called ________.

• A) real income
• B) overtime pay
• C) discretionary income
• D) average of earnings

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense.

Income Tax Expense

The total amount of income tax a company is obligated to pay to tax authorities, calculated based on its taxable income.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by shareholders' equity.