One weakness of the times interest earned ratio is that it includes only the annual interest expense
as a finance expense and ignores other financing items such as lease payments that must be paid.
Indicate whether the statement is true or false
TRUE
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When including writing a buffer that includes information that is favorable to the reader, what type of buffer is being used?
A) Agreement B) Appreciation C) Good news D) Understanding E) Fairness
Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?
A) interest B) evaluation C) trial D) awareness E) adoption
Pense Co purchased 40% of the stock of Stretch Co in Year 1 for $100,000 . Stretch had net income in Year 1 of $50,000 and net income in Year 2 of $30,000 . Stretch also paid total dividends of $20,000 in Year 2 . On January 1, Year 3, Pense Co sold its investment in Stretch Co to GE Capital Corporation (GE) for $130,000 . What entry would Pense Co make to record the sale of Stretch Co?
a. Cash 130,000 Gain on Sale 6,000 Investment in Stretch 124,000 b. Cash 130,000 Loss on Sale 2,000 Investment in Stretch 132,000 c. Cash 130,000 Loss on Sale 10,000 Investment in Stretch 140,000 d. Cash 130,000 Loss on Sale 30,000 Investment in Stretch 160,000 e. Cash 130,000 Loss on Sale 20,000 Investment in Stretch 150,000
Describe the standard parts of a business letter