The times interest earned ratio is computed by dividing net income by interest expense.
Answer: False - The times interest earned ratio is computed by dividing (net income + interest expense + income tax expense) by interest expense
The times interest earned ratio is computed by dividing net income by interest expense.
Answer: False - The times interest earned ratio is computed by dividing (net income + interest expense + income tax expense) by interest expense
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.