Recent data from the Harmony Health Foods Company is shown below: Current liabilities $180 Income before interest and taxes $125 10% Bonds, long-term 360 Interest expense 36 Total liabilities 540 Income before tax 89 Shareholders equity Income tax 27 Capital stock 200 Net income $ 62 Retained earnings 280 Total shareholders equity 480 Total liabilities and equity $1,020 HHFS Times interested earned ratio is: a. 3.47 times b. 1.73 times c. 2.47 times d. 10.0 times An extraordinary event for financial reporting purposes is both: a. Unusual and material. b. Infrequent and significant. c. Material and infrequent. d. Unusual and infrequent. The FASBs standard-setting process includes, in the following order: a. Exposure draft, research, discussion memorandum, SFAS. b. Research, exposure draft, discussion memorandum, SFAS. c. Research, discussion memorandum, exposure draft, SFAS. d. Discussion memorandum, research, exposure draft, SFAS. Accounting standard setting is based on: a. The scientific method. b. A political process. c. Deductive reasoning. d. Inductive reasoning.