What Is a Firms Times Interest Earned If It Posts

question 11

Multiple Choice

What is a firms times interest earned if it posts revenues of $200,000,taxes of $35,000,expenses of $100,000,and interest of $30,000

• A) 3.3 times
• B) 2.0 times
• C) 2.2 times
• D) 0.5 times
• E) 1.3 times

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Definitions:

Organization's Board

A group of individuals elected or appointed to oversee and govern the activities and strategic direction of an organization.

Responsibility

The obligation to act ethically and be accountable for one's actions or decisions, often within a specific role or context.

Excess Benefit Transaction

Transactions in which the economic benefits provided by a nonprofit organization to or for the use of a disqualified person exceed the value of the consideration received by the organization.

Employee Compensation

Refers to the salary, wages, and benefits provided to employees in exchange for their work.