Which of the Following Statements About the Times-Interest-Earned Ratio Is

question 160

Multiple Choice

Which of the following statements about the times-interest-earned ratio is true?

• A)A lower ratio indicates a higher debt paying ability.
• B)Debt reduction leads to an increase in interest expense.
• C)The times-interest-earned ratio is also called the interest-coverage ratio.
• D)The times-interest-earned ratio is calculated by dividing gross income by interest expense.

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Definitions:

Patient Protection

Laws and regulations designed to ensure the rights and safety of patients in receiving medical care.

Optimal Resources

The most efficient allocation of resources that results in the maximum output of goods and services.

Health Care Industry

A sector that provides medical services, manufactures medical equipment, or drugs, and offers medical insurance.

Out of Pocket

Expenses that are paid directly by an individual, often referring to medical expenses not covered by insurance.