A and B Are Neighbours

question 4

True/False

A and B are neighbours. Before A left on a holiday, he asked B to "keep an eye on his house." While A was on holidays, B noticed that A's lawn was in need of cutting and proceeded to cut the lawn. On A's return from his holiday, B demanded $10 for cutting the lawn. B would not be entitled to claim anything for his service because his act was gratuitous.

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Definitions:

Annual Payroll

The total amount of wages, salaries, bonuses, and other compensation paid by a business to its employees over a year.

Business Days

Days of the week excluding weekends and public holidays, typically Monday through Friday, when business operations are conducted.

Fixed Charge Coverage

A financial metric evaluating how well a company can pay off its fixed expenses, like interest and leases, using its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Times Interest Earned Ratio

A measure of a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.