The Times Interest Earned Ratio Is Defined As

question 378

Multiple Choice

The times interest earned ratio is defined as:

• A) Net income divided by interest expense.
• B) Interest expense divided by net income.
• C) EBIT divided by interest expense.
• D) Interest expense divided by EBIT.
• E) Sales divided by interest expense.

---

Definitions:

Calcite

A carbonate mineral and the most stable polymorph of calcium carbonate (CaCO3), commonly found in sedimentary rocks.

Arabian Peninsula

A large, relatively arid peninsula in Western Asia, bordered by the Red Sea, Arabian Sea, and Persian Gulf, consisting of several countries including Saudi Arabia.

Thrust Faults

A type of fault in which one rock layer is pushed up and over another, often related to compressional tectonic forces.

Sedimentary Rocks

Rocks formed by the accumulation and compaction of sediment, often containing fossils and layers that reveal Earth's past environments.