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

Recognize the significance of monitoring changes in disbursements to control expenses.

Identify different types of payment methods including certificates of guaranteed payment.

Comprehend the basics of the accounting process, including the recording of business transactions.

Know the use of specific types of checks in various professional scenarios.

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Definitions:

U.S. workers

Individuals employed in the United States, encompassing a diverse range of professions, industries, and economic sectors.

Trades Disputes Act

Legislation designed to regulate labor disputes, including strikes and collective bargaining, ensuring they are conducted within legal frameworks.

Great Britain

is a geographical term that refers to the island located northeast of Ireland and northwest of France, comprising the main territory of the United Kingdom—England, Scotland, and Wales.

Immunity

In the context of labor relations, immunity refers to legal protections provided to unions or workers engaged in certain sanctioned activities, such as strikes, safeguarding them from certain legal repercussions.