Indicate Whether Each of the Following Statements Is True or False

question 59

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)EBIT stands for earnings before income taxes.
_____ b)EBIT is used in the computation of the return-on-assets ratio.
_____ c)A low times-interest-earned ratio is a sign of a high-risk company.
_____ d)Dividends are deductible in the determination of taxable income.
_____ e)Interest is deducted on the income statement but is ignored on the tax return.

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Definitions:

Goblet Cells

Specialized epithelial cells that secrete mucus to lubricate and protect the mucous membranes of the intestines and respiratory tract.

Serous Fluid

Fluid similar to lymph that is produced by and covers serous membrane; it lubricates the serous membrane.

Mucus

A slippery secretion produced by mucous membranes, serving to protect and lubricate surfaces.

Basement Membrane

A thin layer of extracellular matrix that separates epithelial or endothelial cells from the underlying connective tissue, providing support and regulation.