The Times Interest Ratio Helps the Auditor Determine If the Client

question 138

True/False

The times interest ratio helps the auditor determine if the client can comfortably make its interest payments required in the future on its long-term debts.

---

Definitions:

Bretton Woods System

A monetary management system that established the rules for commercial and financial relations among major industrial states after World War II, introducing fixed exchange rates and laying the foundation for modern international monetary systems.

Trade Surplus

Occurs when the value of a country's exports exceeds the value of its imports.

U.S. Dollar

The official money of the United States, commonly utilized as a standard and reserve financial instrument globally.

Imports

refer to goods or services purchased from other countries, which are brought into a country to meet domestic demand or for further processing.