Increasing interest expense will have what effect on Earnings Before Interest and Taxes (EBIT)? A. Increase it B. Decrease it 1. It will have no effect D. There is not enough information to tell 2. Which account represents the cumulative earnings of a company since the company started, minus dividends paid? A. Additional paid-in capital B. Common stock C. Retained earnings D. Accumulated depreciation 3. In examining the liquidity ratios, the primary emphasis is the company's A. Ability to effectively employ its resources B. Overall debt position C. Ability to pay short-term obligations on time D. Ability to earn an adequate return or profits Which of the following is NOT considered to be a profitability ratio? A. Profit margin B. Times interest earned 4. Return on equity Return on assets (ROI) D