A Company Had a Fixed Interest Expense of $6,000,its Income

question 107

Multiple Choice

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equals to

• A)0.33
• B)0.71
• C)1.40
• D)3.00
• E)12,000

Explain the concept of derived demand in the context of resource markets.

Describe the impact of market structures (pure competition vs. imperfect competition) on resource demand and pricing.

Assess the implications of elasticity of resource demand and the factors influencing it.

Understand how changes in productivity affect resource demand and the factors contributing to productivity changes.

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Definitions:

Monthly Cash Expenses

The total outlay of cash by a business in a month, including all operating expenses, payments, and purchases.

Cash Balance

The amount of cash held by a business at any point in time, reflecting its immediate liquidity position.

Ratio

A ratio is a quantitative relationship between two numbers, showing how many times the first number contains the second or how the two numbers compare.

Bank Reconciliation

The method of aligning the figures in a company's bookkeeping records for a cash account with the equivalent data on a bank statement.