The Higher the Times Interest Earned Ratio,the Higher the Interest

question 5

True/False

The higher the times interest earned ratio,the higher the interest expense.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender may seize if the borrower fails to repay the loan.

Deposit Account

A bank account that holds deposited funds, such as a savings or checking account, allowing for the deposit and withdrawal of money.

Perfection

In law, especially regarding secured transactions, refers to the act of making a security interest enforceable against third parties by fulfilling legal requirements.

Financing Statement

A document filed by a creditor to announce a security interest in a debtor's assets, used in securing loans.