Question
Which of the following statements is correct about the interpretation of the Times Interest Earned ratio? a. It measures the percentage of total assets financed
Which of the following statements is correct about the interpretation of the Times Interest Earned ratio?
a. It measures the percentage of total assets financed with debt.
b. Lower ratio means less risk for the company in term of solvency.
c. Higher ratio means less risk for the company in term of solvency.
d. It measures the percentage of total assets financed with equity.
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Financial Reporting And Analysis Using Financial Accounting Information
Authors: Charles H Gibson
12th Edition
1439080607, 978-1439080603
