Which of the Following Will Not Cause Times Interest Earned

question 56

Multiple Choice

Which of the following will not cause times interest earned to drop? Assume no other changes than those listed.

• A)An increase in bonds payable with no change in operating income.
• B)An increase in interest rates.
• C)A rise in preferred stock dividends.
• D)A rise in cost of goods sold with no change in interest expense.
• E)A drop in sales with no change in interest expense.

Understand the relationship between interest rates, investment periods, and final payouts.

Calculate the amount of principal given specific investment conditions.

Determine the necessary investment amount to achieve a specific interest payout.

Understand and calculate the time period necessary for investments to reach a certain value.

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Definitions:

Psychodynamic Theorists

Individuals who focus on the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Erotomanic Delusions

Delusional beliefs held by some individuals that they are loved by and in a relationship with a person on whom they focus their attention (for example, a celebrity), a person with whom they have no relationship.

Stalkers

Individuals who persistently follow, watch, contact, or harass someone else in a way that feels threatening or invasive to the victim.

Delusions of Grandeur

A false belief in one’s own superiority, greatness, or power, often seen in psychiatric conditions like schizophrenia or bipolar disorder.