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:

Mammoth

A large, extinct species of the elephant, known for its long curved tusks and considerable size, that lived during the Pleistocene epoch.

Hunter

A person who pursues and kills wild animals for food or sport.

Extinct Species

Species that no longer exist anywhere on Earth, often due to natural causes or human activities.

Ice Age

A period of long-term reduction in the temperature of Earth's surface and atmosphere, leading to the presence or expansion of continental and polar ice sheets and alpine glaciers.