The Times Interest Earned Ratio Is Calculated by Dividing

question 55

Multiple Choice

The times interest earned ratio is calculated by dividing

• A)net income by interest expense.
• B)net income plus income tax expense by interest expense.
• C)net income plus interest expense by interest expense.
• D)net income plus interest expense plus income tax expense by interest expense.

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Definitions:

Total Quality Management

A management approach to long–term success through customer satisfaction, involving all members of an organization in improving processes, products, services, and the culture in which they work.

Inspection Processes

A systematic examination or assessment of various aspects of a product, process, or system to ensure compliance with standards.

Quality Standards

Refers to the established set of criteria outline the acceptable level of product quality or performance.