The Times Interest Earned Ratio Is Calculated by Dividing Income

question 81

True/False

The times interest earned ratio is calculated by dividing income before interest expense and income taxes by interest expense.

---

Definitions:

Study Hours

The amount of time allocated by individuals for learning or educational activities.

GPA

Grade Point Average, a standard way of measuring academic achievement in the U.S., usually on a scale from 0.0 to 4.0.

Variable Inputs

Inputs whose quantities can be changed in the short term to adjust production levels, such as labor and raw materials.