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A High Times Interest Earned Ratio Indicates an Extra Margin

question 95

True/False

A high times interest earned ratio indicates an extra margin of protection if the company's profitability declines in the future.


Definitions:

Commission

A fee paid for provided services, typically a percentage of the transaction value, common in sales and trading environments.

Monthly Quota

A set target or amount that needs to be achieved or sold within a monthly timeframe.

Net Pay

The amount of money an employee receives after deductions such as taxes and retirement contributions are subtracted from their gross salary.

Gross Pay

Definition: The total amount of money an employee earns before any deductions are taken out.

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