Numbers of Times Interest Charges Earned Is Computed as

question 165

Multiple Choice

Numbers of times interest charges earned is computed as

• A) Income before income taxes plus Interest Expense divided by Interest Expense
• B) Income before income taxes less Interest Expense divided by Interest Expense
• C) Income before income taxes divided by Interest Expense
• D) Income before income taxes plus Interest Expense divided by Interest Revenue

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Definitions:

Government Securities

Financial instruments issued by a government to borrow money from investors with a promise to pay back with interest.

Recessionary Gap

A situation in macroeconomics where the actual output of an economy is less than its potential output, leading to unemployment and underutilized resources.

Money Supply

The aggregate financial amounts present in an economy at an identified time.

Interest Rate

The cost of borrowing money expressed as a percentage of the amount borrowed or the return on investment.