Balance Sheet and Income Statement Data Indicate the Following Based on the Data Presented, What Is the Times Interest

question 131

Multiple Choice

Balance sheet and income statement data indicate the following: $\begin{array}{lr}\text { Bonds payable, } 10 \% \text { (due in two years) } & \$ 1,000,000 \\\text { Preferred } 5 \% \text { stock, } \$ 100 \text { par (no change during year) } & 300,000 \\\text { Common stock, } \$ 50 \text { par (no change during year) } & 2,000,000 \\\text { Income before income tax for year } & 550,000 \\\text { Income tax for year } & 80,000 \\\text { Common dividends paid } & 50,000 \\\text { Preferred dividends paid } & 15,000\end{array}$
Based on the data presented, what is the times interest earned ratio? (Round to one decimal point.)

• A) 1.5
• B) 6.4
• C) 6.5
• D) 5.5

Define productive and allocative efficiency and differentiate between them.

Assess how changes in determinants of demand and supply, such as consumer income or resource prices, affect market equilibrium.

Explain the impact of changes in the prices of substitute goods on the demand for a product.

Identify the outcomes of simultaneous shifts in both supply and demand curves on equilibrium price and quantity.

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Definitions:

Counterconditioning

A behavioral therapy technique where a maladaptive response to a stimulus is replaced with a more adaptive one.

Unwanted Responses

Behavior or reactions that are involuntary, undesirable, or inappropriate in a given context.

Free Association

A psychoanalytic technique in which patients are encouraged to convey any thoughts that come to mind without censorship to uncover unconscious thoughts and feelings.

Unconditional Positive Regard

An attitude of total acceptance and support toward another person, regardless of what they say or do, as conceptualized by psychologist Carl Rogers.