A Company Has Current Assets of $5 Million and Net

question 126

Multiple Choice

A company has current assets of $5 million and net income of $10 million.Current liabilities total $2.5 million,interest expense is $2 million,and income tax expense is $3 million.What is the times interest earned ratio for this company?

• A) 0.5
• B) 7.5
• C) 0.3
• D) 2.0

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Definitions:

Exploratory Surgery

A medical procedure performed to investigate and diagnose the cause of symptoms that cannot be diagnosed through other means.

Hidden Observer

A hypothetical part of the mind in hypnotism believed to observe events that the patient does not consciously perceive.

Consciousness Modes

Refers to the different states or levels of awareness that an individual can experience, ranging from full alertness to various stages of unconsciousness.

Hilgard's Study

Refers to research by Ernest Hilgard, known for his work on hypnotism and the theory of a "hidden observer" in the consciousness.