Calculating the Times Interest Earned Ratio Using EBITDA Is More

question 73

True/False

Calculating the times interest earned ratio using EBITDA is more conservative than using EBIT because it takes the cost of replacing fixed assets into consideration.

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Definitions:

Substructure

The underlying structure or foundation upon which buildings, systems, or theories are built.

Neolithic Revolution

The domestication of plants and animals by peoples with stone-based technologies, beginning about 10,000 years ago and leading to radical transformations in cultural systems; sometimes referred to as the Neolithic transition.

Domesticating

The process of adapting wild plants and animals for human use, making them more suitable for farming, companionship, or as work animals.

Horticultural

Pertains to the art or practice of garden cultivation and management.