The Times-Interest-Earned Ratio Is Calculated as ________

question 215

Multiple Choice

The times-interest-earned ratio is calculated as ________.

• A) earnings before interest and tax divided by interest expense
• B) profit before tax divided by interest expense
• C) net income divided by interest expense
• D) income tax expense plus interest expense divided by interest expense

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Definitions:

Second World Status

A Cold War-era term originally used to describe countries aligned with the Soviet Union and socialism, now sometimes used to refer to countries with intermediate levels of economic development.

International Politics

The study of relationships and interactions between countries, focusing on diplomacy, conflicts, alliances, and international policies.

Leadership Role

A position within an organization or group that involves guiding and directing others to achieve specific goals.

Globalization

The process of transformation of local or regional phenomena into global ones, involving the interconnectedness of economies, societies, and cultures across the world.