The Ratio That Measures the Number of Times That Operating

question 47

Multiple Choice

The ratio that measures the number of times that operating income can cover interest expense is the:

• A)leverage.
• B)rate of return on total assets.
• C)debt ratio.
• D)times-interest-earned ratio.

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Definitions:

Objective

Unbiased, not influenced by personal feelings or opinions in considering and representing facts.

Depth of Field

Depth of field is a photography term describing the distance between the closest and farthest objects in a photo that appear acceptably sharp.

Specimen

An individual animal, plant, piece of a mineral, etc., used as an example of its species or type for scientific study or display.

Magnifications

Magnification refers to the process of enlarging the appearance of an object through optical instruments, such as microscopes, without altering its actual size.