A Business Reports the Following in Its Financial Statements Its 'Times Interest Earned' Ratio Is:
A) 5

question 6

Multiple Choice

A business reports the following in its financial statements:
$$\begin{array} { l } \text { Profit before tax and interest } &\$100\\\text { Interest expense }&\quad\quad\quad\quad20\\\text { Income tax expense }&\quad\quad\quad\quad\quad\quad\quad\quad30\end{array}$$
Its 'times interest earned' ratio is:

• A) 5.0 times
• B) 6.5 times
• C) 3.5 times
• D) 4.0 times

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Definitions:

Body Temperature

is the measure of the body's ability to generate and get rid of heat, reflecting the balance between heat production and loss.

Primary Burn

The initial injury or damage to skin tissue caused by direct exposure to excessive heat, chemicals, electricity, or radiation.

Partial-Thickness Burn

A burn affecting both the epidermis and a portion of the dermis layer of skin, characterized by pain, redness, and blistering.

Epidermis

The outermost layer of skin, serving as a protective barrier against environmental elements.