Debtors Are Interested in the Times Interest Earned Ratio Because

question 76

Multiple Choice

Debtors are interested in the times interest earned ratio because they want to

• A) know what rate of interest the corporation is paying
• B) have adequate protection against a potential drop in earnings jeopardizing their interest payments
• C) be sure their debt is backed by collateral
• D) know the tax effect of lending to a corporation

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Definitions:

Turgor

The state of being swollen or distended, typically used to describe the elasticity of the skin as an indicator of hydration and health.

Dehydration

A condition resulting from excessive loss of body water, leading to imbalances in essential minerals and electrolytes.

Ptosis

The drooping or falling of the upper eyelid, which can be due to various causes including nerve damage, muscle diseases, or congenital conditions.

Ectropion

A condition where the eyelid turns outward, exposing the inner eyelid and eyeball, which can lead to irritation and discomfort.