Which of the Following Will Not Cause Times Interest Earned

question 56

Multiple Choice

Which of the following will not cause times interest earned to drop? Assume no other changes than those listed.

• A)An increase in bonds payable with no change in operating income.
• B)An increase in interest rates.
• C)A rise in preferred stock dividends.
• D)A rise in cost of goods sold with no change in interest expense.
• E)A drop in sales with no change in interest expense.

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Definitions:

Sustainable Business

An enterprise that operates in a way that preserves or enhances economic opportunity, environmental health, and social equity for current and future generations.

Well-being

A state of comfort, health, or happiness.

Natural Environment

The physical, chemical, and biological systems and resources that exist independently of human actions.

Sustainable Business Model

A way of operating a business that seeks to create long-term value by taking into consideration how it operates in the ecological, social, and economic environment.