22. Which of the following is the numerator used incalculating the times interest earned ratio? net income
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Question:
- 22. Which of the following is the numerator used incalculating the times interest earned ratio?
- net income + interest expense + tax expense
- net income + interest expense
- net income + tax expense
- Net income
- 23. Other things being equal, the higher the timesinterest earned ratio, the higher the likelihood of meetinginterest payments as they become due.
- true
- False
- 24. A gross profit ratio of 55% indicates that:
- for each $1 of gross profit the company generates $0.55 in netincome
- for each $1 of gross profit, the company generates $0.55 insales
- for each $1 of net income the company generates $0.55 in grossprofit
- for $1 of sales the company generates $0.55 in grossprofit
- 25. A country recently allowed foreign companies tooperate in an industry, which was previously open only to domesticproducers. Gross profit ratios are more likely to decline in thisindustry in the future.
- true
- False
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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