Which of the Following Statements Is Not True

question 46

Multiple Choice

Which of the following statements is not true?

• A) The times interest earned ratio gives an indication of a company's ability to meet interest payments as they come due.
• B) EBIT can be calculated by adding interest expense and income tax expense to net earnings.
• C) The times interest earned ratio is calculated by dividing the sum of net earnings, interest expense, and income tax expense, by interest expense.
• D) The higher a company's debt to total assets ratio, the lower the company's times interest earned ratio will be.

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Definitions:

Incremental Theories

Beliefs that abilities and intelligence can grow and develop with time and practice.

External Environment

All elements outside of an organization that can potentially affect its performance or operations.

Seating Arrangements

The organization or layout of seats or workspaces, which can influence communication, collaboration, and social dynamics within a group.

Team Concerns

Issues or matters that are important to the well-being, performance, or success of a team.