Which of the Following Is the Formula to Compute Times-Interest-Earned

question 123

Multiple Choice

Which of the following is the formula to compute times-interest-earned?

• A)Total liabilities/total assets
• B)Interest expense/income from operations
• C)Income from operations/interest expense
• D)Total assets/total liabilities

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Definitions:

Revenue Received

The actual income that a company or organization receives during a specific period, typically from sales of goods or services.

Operational Performance

Evaluation of an organization's effectiveness in producing its goods or services, considering efficiency and productivity.

EBIT

EBIT, an indicator of corporate earnings, captures the profit of a company by including all costs except for those related to interest and taxes.

Income Taxes

Taxes imposed by the government on income generated by businesses and individuals within their jurisdiction.