The Number of Times Interest Expense Is Earned Is Computed

question 35

Multiple Choice

The number of times interest expense is earned is computed as

• A) net income plus interest expense, divided by interest expense
• B) income before income tax plus interest expense, divided by interest expense
• C) net income divided by interest expense
• D) income before income tax divided by interest expense

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Definitions:

Incorporators

Individuals or entities involved in the legal process of forming a corporation, responsible for its initial setup and registration.

Alien Corporation

A business that is incorporated in a foreign country.

Federal Law

Legislation enacted by the national government or Congress of a country.

State Law

Refers to laws that are enacted and enforced by individual U.S. states, governing within their own territory.