The Calculation of Times Interest Earned Involves Dividing

question 34

Multiple Choice

The calculation of times interest earned involves dividing

• A)net income by annual interest expense.
• B)net income plus income taxes by annual interest expense.
• C)net income plus income taxes and interest expense by annual interest expense.
• D)none of these answer choices are correct.

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Definitions:

Genuineness Of Assent

Knowing and voluntary assent to the terms of a contract. If a contract is formed as a result of mistake, misrepresentation, undue influence, or duress, genuineness of assent is lacking, and the contract will be voidable.

Fraudulent Misrepresentation

Any misrepresentation, either by misstatement or omission of a material fact, knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment.

Undue Influence

Undue Influence is a legal term referring to a situation in which an individual is able to persuade another’s decisions due to the relationship between the two parties.

Mistake Of Value

A misunderstanding about the importance or worth of something, often considered in legal contexts regarding contracts.