Times Interest Earned Is Computed as

question 74

Multiple Choice

Times interest earned is computed as

• A) net income plus interest expense, divided by interest expense
• B) income before income tax plus interest expense, divided by interest expense
• C) net income divided by interest expense
• D) income before income tax divided by interest expense

---

Definitions:

Price-elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

Total Revenue

Total revenue is the total amount of money received by a company from sales of its goods or services before any expenses are subtracted.

Price Inelastic

Refers to a situation where the demand for a product does not change much with a change in price.

Demand Curve Elastic

A characteristic of the demand curve where the quantity demanded by consumers changes significantly as a result of price changes.