The Times-Interest-Earned Ratio Is Calculated As

question 130

Multiple Choice

The times-interest-earned ratio is calculated as:

• A)income from operations divided by interest expense.
• B)(income from operations minus interest expense)divided by interest expense.
• C)(net income after taxes plus interest expense)divided by interest expense.
• D)net income divided by interest expense.

Understand the key elements and importance of short-term financial planning in business operations.

Identify and describe various costs associated with maintaining inventory, including carrying and shortage costs.

Describe the operating cycle, cash cycle, and how they impact business operations.

Explain the concepts of cash flow, cash budget, and their significance in financial management.

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Definitions:

Entertainment Allowance

A budget or fund allocated by organizations for hosting business clients or for employee leisure activities.

Providing Information

The act of supplying relevant and helpful details about a product or service to aid in decision-making.

Handle Customer Complaints

The process of addressing grievances raised by customers regarding products or services to ensure satisfaction.

Return Damaged Merchandise

The process of sending back products that are defective or damaged upon receipt to the seller for a refund, replacement, or credit.