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Author Question: A company is worried about meeting its interest expenses, so it should pay close attention to its ... (Read 84 times)

gonzo233

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on: Jul 6, 2018
A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.
 
  Indicate whether the statement is true or false.

Question 2

Return on investment measures the ratio of total profits to total assets.
 
  Indicate whether the statement is true or false.


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Kimmy

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Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: TRUE
Explanation: Times interest earned compares profit before interest and taxes to total interest charges, showing how readily a company can pay its interest expenses.
Diff: 1

Answer to Question 2

Answer: FALSE
Explanation: Return on investment measures the ratio of net profits to total assets.


gonzo233

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Reply 2 on: Jul 6, 2018
Thanks for the timely response, appreciate it

bigcheese9

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Reply 3 on: Yesterday
Excellent

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