Which of the Following Will Increase a Firm's Times Interest

question 69

Multiple Choice

Which of the following will increase a firm's times interest earned ratio?

• A) An increase in debt
• B) A decrease in cost of goods sold
• C) An increase in interest expense
• D) A decrease in net income

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Definitions:

Obligations

Duties or commitments that one is bound to by law, promise, or moral responsibility.

Nonhuman Life

Refers to all living organisms that are not humans, including animals, plants, fungi, and microorganisms.

Inherent Value

The intrinsic worth of something, recognized as valuable in and of itself, not solely for its utility to humans.

Worldview

A comprehensive perspective from which one sees and interprets the world and their place within it.