Question $37$

Not yet answered

Marked out of $1\mathrm{.}00$

Time left $1$:$45$:$09$

Flag$\_$question

$7$an $-$ ?What is the primary purpose of the times interest earned ratio in financial statement analysis?

$?$ ?a$.$ ?To measure how effectively an entity is generating earnings before interest and tax to cover its interest obligations.

b$.$ ?To establish the entity's capacity to pay dividends to its shareholders.

c$.$ ?To determine the speed at which a company can increase its revenue.

d$.$ ?To assess the number of times an entity's assets cover its shareholder investments.

e$.$ ?To calculate the proportion of liquid assets available to cover immediate liabilities.