Times Interest Earned Is Calculated By

question 127

Multiple Choice

Times interest earned is calculated by:

• A)Multiplying interest expense times income.
• B)Dividing interest expense by income before interest expense.
• C)Dividing income before interest expense and any income tax by interest expense.
• D)Dividing interest and income tax expense by income before interest and income tax expense.
• E)Dividing income before interest expense by interest expense and income taxes.

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Definitions:

Revolutionary

Relating to or involving a drastic and significant change, especially in ideas, methods, or structure.

Raw Materials

The basic substances used in the production of goods, often extracted from the earth.

Custom Made

Products or services specifically tailored to meet the individual needs or preferences of a client.

Raw Materials

The fundamental substances used in the production of goods, typically natural resources or agricultural products.