The Following Financial Statement Information Is Available for Long Corporation

question 104

Multiple Choice

The following financial statement information is available for Long Corporation: The times interest earned for 2017 is

• A) 7.4 times.
• B) 6.4 times.
• C) 9.1 times.
• D) 7.8 times.

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Definitions:

Required Reserves

Required reserves refer to the minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations to ensure bank liquidity.

Excess Reserves

The reserves that banks hold over and above the regulatory requirements set by the central bank or banking regulator.

Excess Reserves

Banking reserves exceeding the reserve requirement set by a central bank, not lent out to the bank's clients.

Interest Rate

The fee, shown as a percent of the original amount, that a borrower must pay to a lender to borrow money or other resources.