The Times Interest Earned Ratio Is Defined As

question 363

Multiple Choice

The times interest earned ratio is defined as:

• A) Net income divided by interest expense.
• B) Interest expense divided by net income.
• C) EBIT divided by interest expense.
• D) Interest expense divided by EBIT.
• E) Sales divided by interest expense.

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Definitions:

Commission

A fee paid to an agent or employee for conducting a transaction or sale, typically a percentage of the sale price.

Merchant's Website

An online platform owned and operated by a seller that enables the showcase and sale of products or services to consumers.

Wholesale Industry

The sector of the economy responsible for selling goods in large quantities, often to retailers or professional users, but not to general consumers.

Retail

The sale of goods and services from individuals or businesses to the end user, typically through physical stores or online platforms.