The Times Interest Earned Ratio Measures

question 42

Multiple Choice

The times interest earned ratio measures

• A) the amount of interest expense related to long-term debt.
• B) the percentage of total assets financed by creditors.
• C) the profitability of an enterprise.
• D) an enterprise's ability to meet interest payments as they come due.

---

Definitions:

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company.

Product Development

The process of bringing a new product or service to market, involving idea generation, design, development, and marketing, aimed at fulfilling a customer need or gap in the market.

Unrelated Diversification

A growth strategy whereby a new business lacks any common elements with the present business.

Growth Strategy

A plan of action designed to increase the market share, sales, revenues, or profits of an organization.