A Times Interest Earned Ratio of 11 Means That the Company's

question 22

Multiple Choice

A times interest earned ratio of 11 means that the company's:

• A)net income is large enough to pay interest and taxes 11 times.
• B)net cash flow from operations before taxes and interest is large enough to pay interest 11 times.
• C)net cash flow from operations is large enough to pay interest and taxes 11 times.
• D)net income before taxes and interest is large enough to pay interest 11 times.

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Definitions:

Uncontrollably

Acting or occurring without being able to be controlled or restrained, often used to describe emotions or physical responses.

Drive-Reduction Theory

A theory of motivation proposing that the primary motivation of all organisms is to reduce their drives, such as hunger, thirst, or the need for warmth.

Stimulus Motive Theory

The concept that behavior is motivated by a desire to increase stimulation in order to maintain an optimal level of arousal.

Evolutionary Theory

A scientific theory that explains how species change over time through mechanisms like natural selection and genetic variation.