Auto Industries Company Reported the Following on Its Income Statement

question 134

Multiple Choice

Auto Industries Company reported the following on its income statement: If the income statement also shows interest expense equal to $80,000, what is the company's times interest earned ratio?

• A)5 times
• B)8 times
• C)5.25 times
• D)6.25 times

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Definitions:

Long-arm Statute

A state statute that grants to a state’s courts broad authority to exercise jurisdiction over out-of-state persons who have contacts with the state.

Principal Place of Business

The primary location where a company's business is conducted or managed.

In Personam Jurisdiction

The legal authority for a court to make a decision affecting a particular individual or entity, based on their presence or actions within the court's territory.

Venue

The geographic location or legal jurisdiction in which a legal case is heard and decided.