What Is a Firms Times Interest Earned If It Posts

question 11

Multiple Choice

What is a firms times interest earned if it posts revenues of $200,000,taxes of $35,000,expenses of $100,000,and interest of $30,000

• A) 3.3 times
• B) 2.0 times
• C) 2.2 times
• D) 0.5 times
• E) 1.3 times

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Definitions:

Management Process

The series of actions and decisions that managers undertake to achieve organizational goals, including planning, organizing, leading, and controlling.

Controlling

In management, controlling refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed to ensure that objectives are achieved.

Pricing

The process of determining the value that will be charged for a product or service.

Primary Functions

The main or core activities that are essential for the operation of a business or organization.