When the times interest earned ratio decreases, the likelihood of default on liabilities increases.
Answer the following statement true (T) or false (F)
True
The times interest earned ratio measures whether sufficient resources are generated from operations to cover interest costs. In general, a low times interest earned ratio is viewed less favorably than a high one. A low ratio indicates less margin of protection should the company's profitability decline in the future.
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Using the following transactions, calculate (
A) the ending balance of Cash, (B) the ending balance of Accounts Receivable, (C) total liabilities, and (D) Stockholders' Equity at the end of the period. For parts a, b, and d, indicate whether each balance is debit or credit. a. Began doing business by selling shares of common stock to investors for $50,000 in cash.b. Billed customers for services rendered, $10,000.c. Paid for six months' subscription in advance, $2,500.d. Received advertising bill, to be paid next week, $500.e. Dividends of $4,000 were paid to common stock holders.f. Received $7,500 from customers billed in b.g. Paid half of advertising bill.h. Received $1,000 in advance of performing a service.
In the organization's external environment, what key target audiences must be served?
What will be an ideal response?
What are the functions in the order cycle?
What will be an ideal response?
The business form that is equivalent to the personal cash flow statement is the income statement
Indicate whether the statement is true or false