Times Interest Earned Is Also Called the

question 109

Multiple Choice

Times interest earned is also called the

• A) money multiplier.
• B) interest coverage ratio.
• C) coupon coverage ratio.
• D) premium ratio.

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Definitions:

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Equity Method Investments

An accounting technique used to assess the profits earned through an investment in another company, incorporating these profits into the investing company's income statements.

Fair Value Option

Allows companies the choice to measure financial instruments at their fair values, with changes reflected in earnings.

Temporal Method

An accounting technique used to convert the financial statements of a subsidiary into the parent company's currency by using the exchange rates in effect at the time the assets and liabilities were acquired.