Which of the Following Will Not Cause Times Interest Earned

question 56

Multiple Choice

Which of the following will not cause times interest earned to drop? Assume no other changes than those listed.

• A)An increase in bonds payable with no change in operating income.
• B)An increase in interest rates.
• C)A rise in preferred stock dividends.
• D)A rise in cost of goods sold with no change in interest expense.
• E)A drop in sales with no change in interest expense.

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