Which of the Following Statements Is Not Correct

question 34

Multiple Choice

Which of the following statements is not correct?

• A)A ratio that indicates a firm's long-term,debt-paying ability from the income statement view is the times interest earned.
• B)Some of the items on the income statement that are excluded in order to compute times interest earned are interest expense,income taxes,and unusual or infrequent items.
• C)Capitalized interest should be included with interest expense when computing times interest earned.
• D)Usually,the highest times interest coverage in the most recent five-year period is used as the primary indication of the interest coverage.
• E)In the short run,a firm can often meet its interest obligations,even when the times interest earned is less than 1.00.

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Definitions:

Marketing Message

The core idea or message that a company wants to convey to its target audience through marketing efforts.

Financial Value

Financial value quantifies the monetary worth of an asset, service, or company, often gauged through pricing, market demand, and investment return.

Persuasive Presentation

A type of speech or slide show designed to convince or influence the audience regarding a specific viewpoint.

Audience

The group of people for whom a message, piece of writing, or entertainment is intended.