The Following Amounts Were Taken from the Financial Statements of R.Dodd

question 47

Multiple Choice

The following amounts were taken from the financial statements of R.Dodd Company: $\begin{array}{lrr}&2014&2013\\\text { Current liabilities } & \$ 1,280,000 & \$ 1,220,000 \\\text { Long-term liabilities } & 1,800,000 & 1,600,000 \\\text { Interest expense } & 100,000 & 50,000 \\\text { Income tax expense } & 50,000 & 30,000 \\\text { Net income } & 400,000 & 170,000 \\\text { Net cash provided by operating activity } & 425,000 & 270,000\end{array}$ The times interest earned for 2014 is

• A) 4.0 times.
• B) 5.0 times.
• C) 4.5 times.
• D) 5.5 times.

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Definitions:

Dependent Variable

A variable in an experiment or study that is affected or influenced by changes in another variable, typically known as the independent variable.

Independent Variable

The variable in an experiment or study that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Therapy Outcome Studies

Experimental studies that assess the effects of an intervention designed to reduce psychopathology in an experimental group, while performing no intervention or a different type of intervention on another group.

Placebo Control Group

In clinical trials, a group of participants who receive a placebo, serving as a control to measure the effect of a treatment or intervention.