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.

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Definitions:

Criticism

The expression of disapproval of someone or something based on perceived faults or mistakes.

Avoidant Style

A coping mechanism characterized by a tendency to evade dealing with certain situations, conflicts, or emotional issues.

Negotiation

The process of discussing an issue between parties with differing views to reach a mutually acceptable solution.

Indifferent

Showing no interest, concern, or sympathy; apathetic.