The Times-Interest-Earned Ratio Is Calculated as ________

question 215

Multiple Choice

The times-interest-earned ratio is calculated as ________.

• A) earnings before interest and tax divided by interest expense
• B) profit before tax divided by interest expense
• C) net income divided by interest expense
• D) income tax expense plus interest expense divided by interest expense

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Definitions:

Eighteenth Century

The eighteenth century spans the years from January 1, 1701, to December 31, 1800, and is marked by the Enlightenment, industrial innovations, and significant political revolutions in America and France.

Colonial Town

A settlement established by colonizing countries during the period of exploration.

Strong Influence

A significant impact or authority that one entity or factor has over others, shaping decisions, behaviors, or outcomes.

Stamp Act

A 1765 British law that imposed a tax on the colonies for stamped paper used in official documents, widely unpopular and seen as a direct taxation without colonial representation.