Which of the Following Statements Is True About the U

question 48

Multiple Choice

Which of the following statements is true about the U.S.economy?

• A)Each year,many new jobs are created,but few existing jobs are destroyed,and the unemployed find jobs quickly.
• B)Each year,few new jobs are created,but few existing jobs are destroyed,keeping unemployment low.
• C)Each year,many new jobs are created and many existing jobs are destroyed.
• D)Each year few jobs are created,and therefore it takes the unemployed a long time to find a new job.

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Definitions:

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, usually expressed in the form of interest payments on loans, bonds, or credit lines.

Net Income

The remaining earnings of a company once expenses and taxes are subtracted from the gross revenue.

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

Default

Failure to fulfill a financial obligation, such as missing a loan repayment.