One way analysts measure the ability of a company to meet its obligations is to calculate the times interest earned ratio for any outstanding debt the company may have. For Tempo Solutions Corporation, $10,000 of bonds paying 6.5% annually are outstanding. Income before interest and taxes is $7,000 . How would Tempo Solutions Corporation calculate the times interest earned ratio?
a. Income before interest and taxes divided by the interest expense.
b. Income before interest and taxes divided by carrying value of the bonds outstanding.
c. Income before interest and taxes divided by the face rate on bonds.
d. Face amount of bonds divided by income before interest and taxes.
a
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All of the following are true with regard to a Roth IRA except
A. contributions to Roth IRAs must cease after the owner has reached age 70 1/2. B. contributions to Roth IRAs are subject to special modified AGI limitations that are higher than those for traditional IRAs. C. contributions to existing Roth IRAs must be made by the due date of the return. D. contributions to Roth IRAs are never tax deductible.
Negotiators may consider ________ goals, such as money or a specific outcome.
Fill in the blank(s) with the appropriate word(s).
During the year, Franklin Corporation incurred the following costs in connection with the issuance of bonds: Printing and engraving ................................ $ 30,000 Legal fees ............................................ 160,000 Fees paid to independent accountants for registration information ........................................... 20,000 Commissions paid to underwriter
....................... 300,000 The amount recorded as a deferred charge to be amortized over the term of the bonds is a. $0. b. $30,000. c. $300,000. d. $510,000.
U.S. GAAP and IFRS require firms to retrospectively apply any changes in accounting principle by recalculating the income for prior periods under the new accounting principle, if it at all feasible
Indicate whether the statement is true or false