Question: 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

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. 10:4 B. 3:5 C. 1:2.5 D. 2.5:1 E. 1.5:2 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. $0 B. $25 C. $50 D. $75 E. $30

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