The Lower the Times Interest Earned Ratio, the More Likely

question 22

Multiple Choice

The lower the times interest earned ratio, the more likely:

• A) a default in payment will occur.
• B) a business needs to borrow money.
• C) a business will suffer a loss.
• D) interest payments can be made.
• E) a business can pay its debt.

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Definitions:

Heavy Drinker

An individual who consumes alcohol in excess, often to the point where it interferes with their health, social, or occupational life.

Prematurely

Occurring or done before the usual or proper time; too early.

Developmental Psychologist

A professional who studies the psychological growth of individuals, including cognitive, emotional, and social development, throughout different stages of life.

Older

Referring to individuals or entities that have existed for a significant period of time, often implying greater experience, maturity, or age compared to others.