Question: 19. Contingent liabilities can be: A. Probable. B. Remote. C. Reasonably possible. D. Estimable. E. All of these. 20. The times interest earned ratio reflects:

19. Contingent liabilities can be: A. Probable. B. Remote. C. Reasonably possible. D. Estimable. E. All of these. 20. The times interest earned ratio reflects: A. A company's ability to pay its operating expenses on time. B. A company's ability to pay interest even if sales decline. C. A company's profitability. D. The relation between income and debt. E. The relation between assets and liabilities. 21. Fixed expenses: A. Create risk. B. Can be an advantage when a company is growing. C. Include interest expense. D. Do not fluctuate with changes in sales. E. All of these. 22. A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000. Its times interest earned ratio is: A. 0.40 B. 2.50 C. 1:2.5 D. 2.5:1 E. 0.50 23, On December 1, Martin Co. signed a 90-day, 6% note payable, with a face value of$5,000. What amount of interest expense is accrued at Dec. 31 on the note? A. $O B. $25 C. $50 D. $75 E. $300

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