This Year R Opened a Retail Shoe Store, Shoe Jamboree

question 1

True/False

This year R opened a retail shoe store, Shoe Jamboree.The business has less than $10 million in gross receipts.Even if the business adopts the cash method of accounting, it is still required to use the accrual method to account for purchases and sales of inventory.

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Definitions:

Times Interest Earned Ratio

A financial metric that evaluates how well a company can cover its interest expenses with its earnings before interest and taxes.

Net Income

Net income, also known as net profit, is the total profit of a company after all revenues, costs, and expenses have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a particular period.