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:

Tang Dynasty

An imperial dynasty of China (618-907 AD) renowned for its artistic, cultural, and intellectual advancements, and considered a high point in Chinese civilization.

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In Buddhist thought, a potential Buddha who chooses not to achieve enlightenment in order to help save humanity.

Buddhism Introduction

The spread of Buddhism into various regions around the globe, beginning in the 6th century BCE, which introduced the teachings of Siddhartha Gautama, emphasizing enlightenment and the middle path.

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A country in East Asia, known for its rich history, culture, and divide into two distinct nations: North Korea and South Korea, following the Korean War.