The Ratio Times Interest Earned Is Calculated As

question 8

Multiple Choice

The ratio times interest earned is calculated as:

• A) (interest expense + capitalized interest) ÷ income before interest and income taxes.
• B) net income ÷ (interest expense + capitalized interest).
• C) income before interest and income taxes ÷ (interest expense + capitalized interest).
• D) (interest expense + capitalized interest) ÷ net income.
• E) income before interest and income taxes ÷ (interest income + capitalized interest).