Which of the Following Statements About the Times-Interest-Earned Ratio Is

question 160

Multiple Choice

Which of the following statements about the times-interest-earned ratio is true?

• A)A lower ratio indicates a higher debt paying ability.
• B)Debt reduction leads to an increase in interest expense.
• C)The times-interest-earned ratio is also called the interest-coverage ratio.
• D)The times-interest-earned ratio is calculated by dividing gross income by interest expense.

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Definitions:

Laryngoscopy

A medical procedure involving the examination of the larynx and vocal cords using a laryngoscope.

Rhinopharyngography

A radiographic examination of the nasal passages and pharynx using a contrast medium to diagnose obstructions or abnormalities.

Pneumonia

An infection that inflames the air sacs in one or both lungs, which may fill with fluid or pus, causing cough with phlegm or pus, fever, chills, and difficulty breathing.

Pertussis

Also known as whooping cough, a highly contagious respiratory tract infection characterized by severe coughing fits.