A Business Reports the Following in Its Financial Statements

question 21

Multiple Choice

A business reports the following in its financial statements:
Revenues $1 800
Preference Dividend 400
Expenses 600
Assets 1 900
Liabilities 1 100
What is the times dividends earned ratio?

• A) 4.50 times
• B) 2.25 times
• C) 1.80 times
• D) 3.00 times

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Definitions:

Dielectric Oil

A type of insulating oil often used to cool transformers.

Insulator

A material or device that resists the flow of electric current, used to prevent undesired current flow.

Cooling

The process of removing heat from an object or space, often to maintain a desired temperature.

Phase Current

The electric current flowing through one phase of a multi-phase system, like in three-phase electrical systems.