A Bond Payable Is Similar to Which of the Following

question 77

Multiple Choice

A bond payable is similar to which of the following?

• A) Accounts receivable
• B) Property, plant & equipment
• C) Note payable
• D) Note receivable

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Definitions:

Times Interest Earned

A financial ratio that measures a company’s ability to meet its interest payments on outstanding debt.

EBIT

EBIT, or Earnings Before Interest and Taxes, represents a company's profit figure that does not take into account expenses stemming from interest and income taxes.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically presented in the income statement.

Financial Leverage

Utilizing borrowed funds to enhance the possible yield from an investment.