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

question 28

Multiple Choice

Which one 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:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and which can be transferred to another holder.

Natural Persons

Individuals in their capacity as humans in law, as opposed to legal entities like corporations.

Holder in Due Course

A term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original party.

Personal Defense

Measures or actions taken by an individual to protect themselves against harm or danger.