Ask Question
BusinessBusiness
11 June, 17:50

A high times interest earned ratio indicates a. no protection in the event of an earnings decline. b. nothing about protection in the event of an earnings decline. c. extremely good protection in the event of an earnings decline. d. mediocre protection in the event of an earnings decline.

+1
Answers (1)
  1. 11 June, 17:54
    0
    Answer: c.

    Explanation: Interest earned ratio describes and shows the degree of solvency of a business entity.

    The higher the times interest earned ratio the better the business capacity to meet the interest on it debt obligation.

    It also means that the company is well protected and favorable to investors. This does not necessarily means that the business entity is efficiently managing it's debts repayments. It is believed that businesses with ratio <2.5 are seen to posses a higher instability.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A high times interest earned ratio indicates a. no protection in the event of an earnings decline. b. nothing about protection in the event ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales $2,595,600 $2,409,498 Fixed assets (net) : Beginning of year $901,070 $820,000 End of year 829,330 901,070 a.
Answers (2)
Barron Company accepts a credit card as payment for $1,200 of services provided to a customer. The credit card company charges a 5% handling fee for its collection services.
Answers (1)
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000.
Answers (1)
When flying a GPS approach procedure, what effect will overriding an automatically selected sensitivity have?
Answers (1)
The first step in the ted five-step protocol for effective presentations is
Answers (1)
New Questions in Business
On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
Answers (2)
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year.
Answers (1)
A high school currently require students to purchase a parking pass in order to park in the parking lot, but for the coming year they are considering letting all students park for free.
Answers (2)
An oligopolistic market structure is distinguished by several characteristics, one of which is a difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. a. Market control by many small firms.
Answers (1)
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Home » Business » A high times interest earned ratio indicates a. no protection in the event of an earnings decline. b. nothing about protection in the event of an earnings decline. c. extremely good protection in the event of an earnings decline. d.
Sign Up Forgot Password?