The Times Interest Earned Ratio Is Based on Net Income

question 89

True/False

The times interest earned ratio is based on net income because that is the amount of earnings that is available for making interest payments. Interest expense is deducted before taxes are determined; creditors have first claim on the earnings before taxes are paid.

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Definitions:

Oocytes

Female germ cells or eggs that are in various stages of development, essential for reproduction and fertilization.

Puberty

Series of events that transform a child into a sexually mature adult; involves an increase in the secretion of GnRH.

Adolescence

The phase of life between childhood and adulthood, characterized by physical, psychological, and social changes.

Childhood

The period in a human's life following infancy and preceding adolescence, characterized by growth, development, and significant cognitive, emotional, and social changes.