An Increase in ________ Will Decrease the Times-Interest-Earned Ratio

question 107

Multiple Choice

An increase in ________ will decrease the times-interest-earned ratio.

• A) the tax rate
• B) gross profit
• C) interest expense
• D) common stock

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Definitions:

Consumer Goods

Products and commodities produced for and sold to individuals for personal or household use.

Readily Understandable Language

Language that is easily comprehensible to a general audience without specialized knowledge.

Breach of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or condition of a product or service.

Finance Company

A type of financial institution that provides loans to consumers and businesses, often for specific purchases such as vehicles, equipment, or home improvements.