When can the times interest earned ratio be misleading? (a) When net profit is negative. (b) When

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When can the times interest earned ratio be misleading?

(a) When net profit is negative.

(b) When interest rates are changing.

(c) When a company does not generate enough cash to cover interest payments.

(d) When the times interest earned ratio is below 1.0.

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Understanding Financial Statements

ISBN: 9780138114404

12th Edition

Authors: Lyn Fraser, Aileen Ormiston

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Question Posted: Apr 03, 2024 07:00 AM

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When can the times interest earned ratio be misleading? (a) When net profit is negative. (b) When

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Understanding Financial Statements

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