In 2017 Rome Corporation Reported Net Income $190,000, Interest Expense

question 21

Multiple Choice

In 2017 Rome Corporation reported net income $190,000, interest expense $60,000, and income tax expense $40,000.Rome's times interest earned was:

• A)4.2 times.
• B)3.8 times.
• C)3.2 times.
• D)4.8 times.

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Definitions:

Quarterly Returns

Financial reports summarizing the earnings, expenses, and net profits of a company for a three-month period, crucial for assessing its short-term financial health.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Financial Reporting

The process of disclosing financial results and conditions of a company to its stakeholders and the public.

Fear of Retaliation

The apprehension individuals may feel about facing adverse actions or revenge from others as a consequence of speaking out or taking a stand.