The number of times interest charges are earned is calculated as ________
a. Income before income tax + Interest expense / Interest expense
b. Income before income tax / Interest expense
c. Income before income tax ? Interest expense / Interest expense
d. Interest expense / Income before income tax
a
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Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are:
A) a substitute for sound judgment. B) useful analytical measures. C) enough information for analysis, industry information is not needed. D) unnecessary for analysis, but reaction is better.
There are no important consequences if the procedures for incorporation are not followed precisely
Indicate whether the statement is true or false
The limited liability of a stockholder in a closely held corporation may be challenged successfully if the stockholder:
a. Undercapitalized the corporation when it was formed. b. Formed the corporation solely to have limited personal liability. c. Sold property to the corporation. d. Was a corporate officer, a director, or an employee.
When producing broad goods or service mix with diverse requirements on common equipment, the ideal strategy is to run large batches
Indicate whether the statement is true or false