Which of the Following Statements About the Times-Interest-Earned Ratio Is

question 160

Multiple Choice

Which of the following statements about the times-interest-earned ratio is true?

• A)A lower ratio indicates a higher debt paying ability.
• B)Debt reduction leads to an increase in interest expense.
• C)The times-interest-earned ratio is also called the interest-coverage ratio.
• D)The times-interest-earned ratio is calculated by dividing gross income by interest expense.

---

Definitions:

Execution Style

In marketing, it refers to the manner in which an advertising or marketing message is delivered, including the tone, imagery, and format used.

Advertising Message

The key idea or theme conveyed through an advertisement, intended to influence the perception or behavior of the target audience.

Creative Aspect

The element of a project or task that involves innovation, originality, and imaginative thinking.

Advertising Design

The creative process of developing visual and textual elements in advertisements to effectively communicate a marketing message and engage the intended audience.