A Times Interest Earned Ratio of 0

question 40

Multiple Choice

A times interest earned ratio of 0.90 to 1 means:

• A)that the firm will default on its interest payment.
• B)that net income is less than the interest expense.
• C)that the cash flow is less than the net income.
• D)that the cash flow exceeds the net income.
• E)none of the answers are correct.

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Definitions:

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a goal.

Motivation Graph

A visual representation designed to show the factors or elements that influence motivation levels over a period of time.

Satisfied Need

A psychological or physiological requirement that has been successfully fulfilled, leading to a state of contentment or satisfaction.

Psychological Needs

Essential components for mental well-being, including feeling loved, secure, and respected, that influence behaviors and motivation.