The Interest Coverage Ratio Is Computed by Dividing

question 143

Multiple Choice

The interest coverage ratio is computed by dividing:

• A)Operating income by annual interest expense.
• B)Net income by annual interest expense.
• C)Carrying value of bonds by cash interest payments.
• D)Earnings per share by the prime interest rate.

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Definitions:

Competent Parent

A caregiver who possesses the skills, understanding, and approach necessary to provide for a child's physical, emotional, and social development effectively.

Special Needs

A term referring to individuals who require additional or specialized services due to physical, emotional, mental, or learning disabilities.

Diana Baumrind

A developmental psychologist known for her research on parenting styles and their effects on children's behavior.

Social Behavior

Actions or responses of individuals or groups in interaction with others within the same species, influenced by social norms, culture, and personal relationships.