Ask Question
BusinessBusiness
20 February, 22:51

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.

+5
Answers (1)
  1. 21 February, 00:59
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Miranda is an executive for a company that manufactures dental tools. Her company prefers to measure progress by what percentage of the total business in the marketplace it controls. What is her company most interested in
Answers (1)
Bonita Corporation owns machinery that cost $28,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11,928 at December 31, 2020.
Answers (1)
In Cuba, what determines what is produced, how much is produced, and what prices good are sold at? A. the government B. the principles of supply and demand C. individuals and businesses D. the global market
Answers (1)
Now that you have made the necessary product adjustments, what will you do next
Answers (1)
Distinguish between the benefiets of traditional banking amd the benefiets of online banking
Answers (1)
New Questions in Business
Net worth is the difference between a firm's assets and its liabilities. a. True b. False
Answers (1)
Buyer Jim agreed to a 20-day window to get a survey done. A number of problems have occurred and after 20 days from the signed contract date, buyer Jim has yet to have a survey completed. What is now the status of the sales contract? a.
Answers (1)
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Answers (1)
Ingredient lists on gum packages remain somewhat vague, even though these labels fall under federal regulations, because the manufacturers feel their ingredient lists are _[blank]_.
Answers (1)
Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel.
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?