A Times Interest Earned Ratio of 11 Means That the Company's

question 31

Multiple Choice

A Times Interest Earned ratio of 11 means that the company's:

• A) net income is large enough to pay interest and taxes 11 times.
• B) net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times.
• C) net cash flow from operations is large enough to pay interest and taxes 11 times.
• D) income before taxes and interest is large enough to pay interest 11 times.

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Definitions:

Depth Symbol

A notation used in technical drawings to specify the depth of a feature, such as a hole or recess.

General-use Section

A common or standard section of documentation that can be applied across multiple types of projects or products, detailing widespread regulations or specifications.

Counterbore

A cylindrical flat-bottomed hole that enlarges another hole, typically to allow a screw or bolt head to sit flush with or below the surface of a material.

Spotface

A machined flat surface around a hole, usually to provide a seating area for a fastener head or washer.