A Company's Has Fixed Interest Expense of $52,000, Income Taxes

question 52

Multiple Choice

A company's has fixed interest expense of $52,000, income taxes expense of $121,000, and net income of $281,000. The company's times interest earned ratio equals:

• A) 7.73.
• B) 0.11.
• C) 2.33.
• D) 8.73.
• E) 5.40.

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Definitions:

REP Test

Role Construct Repertory Test; a psychological test for assessing an individual's personal construct system, used to understand how one perceives and evaluates their world.

Constructs

Concepts or theories developed to help people understand and organize the world around them, primarily used in social sciences and psychology.

Stable

Refers to something that is not likely to change or fail, showing consistency and reliability over time.

Validity Coefficient

A statistical measure used to assess the extent to which a test accurately measures what it purports to measure.