Which of the Following Is Not Used to Calculate the Times

question 99

Multiple Choice

Which of the following is not used to calculate the times interest earned ratio?

• A)Net income.
• B)Income tax expense.
• C)Interest earned on investments.
• D)Interest expense.

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Definitions:

Accounting Standards

Rules and guidelines that prescribe the specific accounting methods and procedures to present financial statements accurately and consistently.

Investing Section

Part of a cash flow statement that shows the cash spent on and received from investment activities, indicating how a company is allocating its resources for growth.

Statement of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specific period.

Tangible Capital Assets

Physical assets owned by a business that are used in its operation and have a useful life longer than one fiscal year, such as buildings and machinery.