The Times-Interest-Earned Ratio Is Calculated by Which of the Following

question 88

Multiple Choice

The times-interest-earned ratio is calculated by which of the following?

• A)Total assets divided by interest expense.
• B)Earnings before interest and taxes divided by interest expense.
• C)Net income divided by interest expense.
• D)None of these.

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Definitions:

Defense

denotes the reasons, facts, or legal arguments presented by a party in a legal proceeding to counter a claim or accusation made against them.

Equal Pay Act

A U.S. law aimed at abolishing wage disparity based on sex by ensuring equal pay for equal work.

Substantially Equal

Refers to amounts or values that are almost the same or very closely equivalent.

Courts

Judicial institutions authorized to hear and decide on legal disputes, enforce laws, and administer justice.