A Company Had a Fixed Interest Expense of $6,000,its Income

question 69

Multiple Choice

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equal to

• A)0.33
• B)0.71
• C)1.40
• D)3.00
• E)12,000

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Definitions:

Productive

The quality of having a high output or yield; being efficacious in generating desired results or outcomes.

Overall Mood

The general emotional tone or attitude encompassing how an individual or group feels at a given time.

Individual

Pertains to a single person or entity, distinct from others in a group or category.

Group

Two or more people who interact, share common goals, have unspoken or formal rules or norms, maintain stable role relationships, and form subgroups.