The Times Interest Earned Ratio Is Based on Net Income

question 89

True/False

The times interest earned ratio is based on net income because that is the amount of earnings that is available for making interest payments. Interest expense is deducted before taxes are determined; creditors have first claim on the earnings before taxes are paid.

---

Definitions:

Serotonin

A neurotransmitter that plays a key role in regulating mood, anxiety, appetite, and sleep, among other functions.

MPTP

A neurotoxin that produces a permanent Parkinson-like syndrome in humans by destroying dopaminergic neurons in the brain.

Dopamine-producing

Refers to cells that synthesize and release dopamine, a neurotransmitter important for movement, motivation, and reward.

Neurotransmitters

Chemicals in the nervous system that transmit signals from one neuron to another across synapses, playing critical roles in sending, receiving, and processing information.