The Times Interest Earned Ratio Is Calculated by Dividing

question 163

Multiple Choice

The times interest earned ratio is calculated by dividing

• A) net earnings by interest expense.
• B) net earnings before income taxes by interest expense.
• C) net earnings before interest expense by interest expense.
• D) net earnings before interest expense and income taxes by interest expense.

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Definitions:

Metaphysically Important

Pertaining to matters beyond the physical world that are significant in the study or belief in the fundamental nature of reality and being.

Transitional

Pertaining to or involving a phase of change or transformation from one state, condition, or period to another.

Secular

Related to or concerned with worldly rather than spiritual matters; not religious or sacred.

Spiritual

Pertaining to or affecting the human spirit or soul as opposed to material or physical things.