The times interest earned ratio is computed as
A. Income before income taxes + Interest expense ÷ Interest expense
B. Income before income taxes - Interest expense ÷ Interest expense
C. Income before income taxes ÷ Interest expense
D. Income before income taxes + Interest expense ÷ Interest revenue
Answer: A
You might also like to view...
Explain two reasons that digital marketing has become an increasingly important element of the marketer's toolbox
What will be an ideal response?
____ listening is particularly important when interacting with customers over the telephone or via the Web because they cannot see you nodding your head or making eye contact.
A. Dynamic B. Active C. Proactive D. Non-visual
There ________ some men waiting for help, but the reason for their difficulties ________ unclear
A) is/seems B) is/seem C) are/seems D) are/seem
Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450
and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was: A) 16,700 B) 12,000 C) 1,700 D) 13,700