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:

Equivalent Statements

Propositions that have the same truth value in every possible scenario.

Contradictory

Relating to statements, ideas, or propositions that directly oppose each other, such that if one is true, the other must be false.

Inconsistent

Containing elements that are logically in conflict with each other, unable to be true in the same context or at the same time.

Truth Tables

A table used in the field of logic to calculate the values of logical expressions based on their arguments.