Question i. Leveraging implies that a company contains debt financing contains equity financing has a high current ratio. has a high earnings per share Question 2.. All of the following are typically included in the Management's Discussion and Analysis in annual reports except: explanations of any significant changes between the current and prior years' financial statements management s assessment of liquidity. journal entries. off-balance-sheet arrangements Question 3. The number of times interest expense is earned is computed as net income plus interest expense, divided by interest expense income before income tax plus interest expense divided by interest expense net income divided by interest expense income before income tax divided by interest expense Question 4. Which of the following would appear as an extraordinary item on the income statement? loss resulting from the sale of fixed assets gain resulting from the disposal of a segment of the business loss from land condemned for public use liquidating dividend