A High Times-Interest-Earned Ratio Indicates Difficulty in Paying Interest Expense

question 10

True/False

A high times-interest-earned ratio indicates difficulty in paying interest expense.

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Definitions:

Cheques Deposited

The act of placing a check into a bank account for processing and eventual availability of funds.

Electronic Lockboxes

Secure electronic devices used for safe storage and controlled access to keys or assets.

Disbursement Float

The time delay between when a check is issued and when it is actually deducted from the payer's bank account, affecting cash management.