The Times-Interest- Earned Ratios of Benin Inc

question 90

Multiple Choice

The times-interest- earned ratios of Benin Inc. are 20.56 and 7.35 for the years 2013 and 2014, respectively. Which of the following can be the possible reason for such a change?

• A)Benin Inc. incurred less debt specifically in its revolving line of credit.
• B)Benin Inc. incurred more debt specifically in its revolving line of credit.
• C)Benin Inc. paid less interest in its revolving line of credit.
• D)Benin Inc.'s debt-paying ability increased.

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