Answer: True.
Explanation:
Process improvement occurs when a business establishment critically analyses it's process of operations, with the central aim of becoming more efficient in their operations. Process improvement is continuously carried out by organizations for constant improvement.
Process improvement involves evaluating and improving processes to ensure maximum efficiency and customer satisfaction.
Explanation:Process improvement refers to the process of continually evaluating products and services to ensure maximum efficiency is being obtained from them. It involves identifying and eliminating ineffective or wasteful processes to achieve better outcomes. Companies use quality techniques to study the variation present in their processes and make improvements to increase productivity. The ultimate goal is to provide customers with what they want consistently and achieve long-term company success.
Madeline is recording revenues and expenses. When doing this, she is following the guidance set forth in which of the following Statements of Financial Accounting Concepts?
Answer:
It is called matching concept
Explanation:
Matching concept : It states that revenues generated for a particular period should be matched with expenses incurred in generating same revenue.
The rationale is that, it is impossible to generate revenue without incurring operational and other expenses required for running the business,hence, the two must be matched together to establish if there is profit or loss.
A market researcher randomly selects 1 00 drivers under 45 years of age and 2 00 drivers over 45 years of age. Identify the type of sampling used in this example. a) convenience systematic b) cluster simple c) random stratified
Answer:
(c). Random Stratified
Explanation:
Sampling refers to selection of a number of observations for analysis as a representative of the entire population of observations wherein the results would be interpreted the same as if the whole population was subject to analysis.
In a stratified random sampling, the observations are divided into small groups known as strata which relate to a sample interval, from which an item is chosen at random.
In stratified sampling, the selection of an item is taken from the observations belonging to a strata belonging to a particular sample interval.
In the given case, stratified random sampling has been used.
Final answer:
The market researcher is using stratified random sampling by dividing drivers into age groups and sampling from each. This method ensures that different categories of the population are represented in the sample.
Explanation:
The type of sampling used by a market researcher who selects 100 drivers under 45 years of age and 200 drivers over 45 years of age is stratified random sampling. This method involves dividing a sampling frame into relevant subgroups based on certain characteristics—in this case, age groups—and then drawing a sample from each of these subgroups. Such an approach allows the researcher to ensure that both age categories are well-represented in the sample, increasing the likelihood that the sample data is reflective of the entire population.
In the listed examples:
The soccer coach is using stratified sampling because he divides his players into age groups and selects a sample from each.The pollster conducting interviews with all human resource personnel in five different high tech companies is using cluster sampling.The high school researcher interviewing an equal number of male and female high school teachers is also employing stratified sampling, with gender being the basis for stratification.The department store manager is using a type of cluster sampling by selecting random departments and interviewing all employees within those departments.
Mary is managing a data migration project and the project is currently in the executing phase. The project's current total earned value (EV) is $25,000 and the current schedule variance (SV) is $5,000. What is the project's current schedule performance index (SPI)?
Answer:
Schedule performance index (SPI) = 1.25
Explanation:
Earned value (EV)- planned value (PV) = Schedule variance (SV)
25000 - PV = 5000
collecting like terms means taking PV to the right-hand side of the equation & 5000 to the left-hand side of the equation.
25000 - 5000 = PV
PV = 20000
Schedule performance index (SPI) = EV ÷ PV
SPI = 25000 ÷ 20000 = 1.25
Answer:The answer is 1.25
Explanation:
To calculate SPI, we use the formula SPI = EV ÷ PV
EV = $25,000, PV = unknown , SV = $5,000
SV = EV - PV
5,000 = 25,000 - PV
Making PV the subject of formula
PV = 25,000 - 5,000
PV = 20,000
SPI = 25,000 ÷ 20,000
SPI = 1.25
Since it is greater than 1, the project is on track and has a favourable conditions
Determine whether the study depicts an observational study or a designed experiment. A researcher obtained a random sample of 100 smokers and a random sample of 100 nonsmokers. After interviewing all 200 participants in the study, the researcher compared the rate of depression among the smokers with the rate of depression among nonsmokers. A. Observational study. B. Designed experiment
Answer:
A. Observational study
Explanation:
An observational study measures the characteristics of a population by studying individuals in a sample, but does not attempt to manipulate or influence the variables of interest.
A designed experiment applies a treatment to individuals (referred to as experimental units or subjects) and attempts to isolate the effects of the treatment on a response variable.
Hence, we can see that proposed study is observational.
All of the following are functions of the Federal Reserve System except:(A)Auditing member banks(B)Acting as an agent for the U.S. Treasury(C)Fixing the prime rate for commercial banks(D)Lending to commercial banks
Option (C) Fixing the prime rate for commercial banks is NOT a function of the Federal Reserve System; this rate is determined by individual banks themselves.
The question asks which of the following is NOT a function of the Federal Reserve System (Fed): (A) Auditing member banks, (B) Acting as an agent for the U.S. Treasury, (C) Fixing the prime rate for commercial banks, (D) Lending to commercial banks. The Federal Reserve, as the central bank of the United States, conducts monetary policy, regulates and supervises commercial banks, and serves as a banker and fiscal agent for the U.S. government.
However, the prime rate is set by individual banks, not the Fed. The primary functions of the Fed focus on managing the economy and financial institutions. Therefore, the correct answer is (C) Fixing the prime rate for commercial banks, as this is not a function that the Fed performs.
If demand shifts right and price increases, then the total revenue to the group of sellers increases for both elastic and inelastic supply curves. True or false?
Answer:
Yes that is true because revenue= price multiply by quantity so if price increases then revenue will increase. the total revenue for sellers will be greater in elastic curves because the quantity supplied is increased by a larger amount than the increase in price and they wil earn more revenue and vice versa will inelastic supply curve.
__________ refers to the division of the economy into two areas of employment:, a primary sector or upper tier, composed of higher-paid (usually dominant group) workers in more secure jobs, and a secondary sector or lower tier, comprised of lower-paid (often subordinate group) workers in jobs with little security and hazardous working conditions.
Answer:
Split Labour Market
Explanation:
Proposed in the 1970s by Edna Bonacich, the Split labor market theory attempts to define the link between race or ethnicity and the segmentation of the labor market. The theory argues that the segmentation of the labor market is more a political and social structures than individual biases in employment.
For instance, depending on the type of job, an employer will determine what class of employees to target. In a job that requires cheap labor with poor health and insurance plans, an employer will favour lower tier workers who are less eager to complain than the upper tier workers who are more concerned about union requirements
The Split labour market theory used this explanation to divide the economy into the upper sector of higher paid workers in more secure jobs and the lower sector of lower-paid workers in less secure jobs.
David saves money from his teaching job to buy a new boat when he retires in 20 years. The boat will cost $30,000. He has $12,000 in his simple interest savings account. To reach his goal by retirement, David should
move his money to a compound interest account ( T/F)
Answer:
True
Explanation:
The main advantage of a compound interest account is that the interest that you earn also earns interest, so the total amount of earned interest increases.
For example, a $10,000 account earning simple interest at a 4% rate will earn $4,000 in ten years. While the same amount in a compound interest account will earn $4,802.
When preparing journal entries, the account titles are selected using either the dropdown menu (if available) or by keying in the account titles.
A. True
B. False
Answer:
False
Explanation:
The preparation of journal entries is very important in transaction recording process, it is utilized in recording transactions either to the general ledger or via subsidiary ledger into the accounting system.
When preparing journal entries two fields are very important, the account title also called account name and the account number or account code. To prevent accounting or recording error, the account codes are selected using the drop-down menu which displays the account title or account name. This enables the account clerk to verify before posting.
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:__________________.
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is : $6.5 trillion.
Explanation:
The cyclical deficit occurs at the bottom of an economic cycle. A deficit occurs when the government spends more than they take in and the expenditure is more.
For calculating the cyclical deficit the tax rate must be multiplied by potential output subtracted from the actual output. So from this, we get to form that the actual output is $6.5 trillion.
Broker Al offers all his agents the ability to sell their own homes without any commission owed the brokerage. In what part of the work agreement might this information be located?
Answer:
Miscellaneous benefits
Explanation:
In this case, Broker AI cannot put this in the main agreement section of the work agreement because there are certain information about the rights, the terms of sales and other things which are added to the main section of the agreement. In this case, it is the Broker who offers his agent, and this is more like an offer or promotion from the Broker, hence it must be in the miscellaneous benefit section of the work agreement.
A traditional GAAP income statement does not help managers to predict the financial results of their decisions. Which of the following is a reason for this shortcoming?
a. The GAAP statement is based on cost function rather than cost behavior.
b. The GAAP statement is based on classification rather than function.
c. The GAAP statement is based on cost behavior rather than cost function.
d. The GAAP statement is based on function rather than classification.
Answer:
A) The GAAP statement is based on cost function rather than cost behavior.
Explanation:
Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.
While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?
A company typically engages in three sets of activities. These include the day-to-day activities which are classified as ________ activities and the raising of capital needed to run the company which is considered a(n).
Answer:
Operating activities
Explanation:
A company typically engages in three sets of activities. These include the day-to-day activities which are classified as operating activities and the raising of capital needed to run the company.
Operating activities are the daily activities of a business entity which involves functions such as sales and production of product(s), revenue generation, etc.
Another way to look at operating activities are in the light of routine activities of the organisation. Cashflows generated therefrom are referred to as operating cashlows in the cashflow statement whereas profit generated from these day-to-day activities are referred to as operating profit.
Accounting is an information and measurement system that: I.Communicates business activitiesII.Identifies business activitiesIII.Records business activitiesIV.Helps people make better decisions
Answer:
I.Communicates business activities
II.Identifies business activities
III.Records business activities
IV.Helps people make better decisions
Explanation:
Accounting is an information measurement system that identifies business activities, records the business transactions as they occur, in order in which they occur, communicate the result of operations to interested parties which helps all the stakeholders make informed decision.
The main goal of accounting information is to communicate the true and fair view position of the entity to people that may want to make informed judgment on the entity.
Accounting is an information and measurement system using money as a unit of account to record and communicate business activities. The aim is to assist businesses in their compliance with regulations while reaching their profit goals and contributing to national accounts such as GDP.
Explanation:Accounting is indeed an information and measurement system that identifies, records, and communicates business activities and aids in decision making. This involves the use of money as a unit of account, the common denominator used to measure and record values. This allows accountants to charge for a service, such as filing your tax return, in a quantifiable measure.
Businesses, operations aiming to sell goods or services for profit, are subject to laws and regulations. Accounting helps businesses comply with these laws while attaining their profit goal.
These business activities are also reflected in national accounts such as Gross Domestic Product. Knowing how to interact with these components contributes to the effective management of business activity and decision making.
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A married couple is trying to conceive a child. The man works outside during the hot summer months and is also taking medications that cause involuntary muscle contractions. What affect will this have on his sperm production?
Answer:
Hi
The effect on sperm production will depend on the type of medication the person is taking, for example, in the case of antipsychotic medications, in addition to causing involuntary tremors, they block dopamine, a chemical of brain origin that helps with regular responses emotional and controls the brain centers responsible for gratification and pleasure. Similarly, the levels of the hormone prolactin increase, which can cause erectile dysfunction, decreased libido and difficulties reaching orgasm, as well as blocking the action of acetylcholine, which can cause problems in all areas of the body sexual function.
Another type of medications that cause involuntary tremors and that can affect sperm production are statins and fibrates, these medications are likely to interfere with the production of testosterone, estrogens and other sex hormones by affecting the availability of cholesterol, an essential component for certain hormones
Explanation:
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.MicroeconomicsMacroeconomics1. The effect of a large government's budget deficit on the economy's price level2. The effect of government regulation on a monopolist's production decisions3. A consumer's optimal choice when buying a flat-screen TV
Answer:
See answers below
Explanation:
1. The effect of a large government's budget deficit on the economy's price level
Macroeconomics. Macroeconomics deals with the study of the aggregate economy and the impacts of fiscal and monetary policies on the economy. Given three levels of economics participants - the consumer, firms, and the government - macroeconomics focuses on the government. Thus, the effect of a large government's budget on the economy's price level will fall under the purview of Macroeconomics.
2. The effect of government regulation on a monopolist's production decisions
Microeconomics. While this tends toward macroeconomics as it considers the effect of government regulation, it aligns more with Microeconomics as the effect is being considered on a specific firm and not the whole economy.
3. A consumer's optimal choice when buying a flat-screen TV
Microeconomics. This focuses on the consumer as an economic participant, and is thus a micro-economic concern.
The effect of a large government's budget deficit on the economy's price level is studied under macroeconomics, while the effect of government regulation on a monopolist's production decisions, and a consumer's optimal choice when buying a flat-screen TV, are analyzed within the realm of microeconomics.
Explanation:The field of economics is broadly divided into microeconomics and macroeconomics. Microeconomics primarily focuses on the actions of individual agents such as households and businesses within the economy. Meanwhile, macroeconomics looks at broader aspects of the economy as a whole.
The effect of a large government's budget deficit on the economy's price level - This topic falls under macroeconomics because it deals with the broader aspects of a nation's economy. The effect of government regulation on a monopolist's production decisions - This scenario is usually studied in microeconomics as it deals with individual firms in the market. A consumer's optimal choice when buying a flat-screen TV - This topic is a central question of microeconomics, focusing on how an individual consumer makes decisions to maximize utility. Learn more about Economics here:
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Physical boundaries are a convenient and effective way to announce the ending of one legal or cultural system and the beginning of another.
A. True
B. False
Answer:
True
Explanation:
Yes, it is true that physical boundaries are the most effective way to uphold the culture system within the boundary. This is because physical boundaries define some set of rules that adhere to specific boundaries only and it is the duty of the native of that boundary to obey that set of rules.
Physical boundaries aside the one legal system within the boundary from the other legal system.
In your computer repair business, it takes an employee 40 minutes to remove a virus. The employee is paid $14 per hour. What is the direct cost of this service.
Final answer:
The direct cost of the virus removal service is calculated by finding the fraction of an hour spent on the service and multiplying it by the hourly wage, resulting in a cost of $9.33.
Explanation:
To calculate the direct cost of the virus removal service provided by an employee paid $14 per hour, we need to consider how much of an hour is used to remove a virus. Given that it takes 40 minutes to remove a virus, which is ⅓ of an hour, we can proceed as follows:
First, we convert 40 minutes into hours by dividing by 60 (40 minutes ÷ 60 minutes/hour = ⅓0.6667 hours).Next, we calculate the cost for ⅓ of an hour by multiplying the hourly rate by 0.6667. The calculation would be $14 per hour × 0.6667 hours = $9.33.Therefore, the direct cost of the service is $9.33.
Sloane, Inc., issues 25,000 shares of its own common stock in exchange for all of the outstand- ing shares of Benjamin Company. Benjamin will remain a separately incorporated operation. How does Sloane record the issuance of these sha
Answer:
Explanation:
Shares issued will be recorded at fair value as if the stock was sold and the money obtained spent to acquire the subsidiery.
The common stock account is recorded at the par value of these shares and additional amount in excess will be as additional paid-in capital
Many teenagers, both male and female, have clothes they purchased in the past that they "would not be caught dead in today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel
a. cognitive bias.
b. postpurchase cognitive dissonance.
c. psychological risk.
d. need recognition.
Answer:
b. postpurchase cognitive dissonance.
Explanation:
Cognitive dissonance: The term cognitive dissonance is defined as a phenomenon in which an individual's beliefs, behaviors, and ideas contradict or did not match with each other and therefore it creates a state of unease.
Post-purchase cognitive dissonance: The term post-purchase cognitive dissonance is defined as the phrase or context we provide to a particular state of difficulty or unease that exists in an individuals' or customers' mind just after buying or purchasing a particular service or product.
The idea that a company should attempt to satisfy its customers needs while at the same time try to achieve its own objectives is known as:_______.
Answer:
Marketing concept
Explanation:
Marketing concept is the concept or the strategy which the firms or business follow or implement or execute in order to satisfy or fulfil the needs of the customers or consumers, so that firm could increase their sales, maximize the profit and also beat the competition.
Therefore, the idea that the company need to attempt for satisfying the needs of the customers and at the same try to accomplish its own objectives as well, is called as the marketing concept.
In the majority of Fortune 500 companies, the head of the human resource department, usually a vice president, answers to the chief executive officer (CEO) of the company. In many companies, the head of the human resource department sits on the board of directors, the planning committee, or both. These trends are indicative of how human resource managers are:_____________
Answer:
increasingly involved in their organization's strategic and policy-making activities.
Explanation:
Human resources managers also consult or sit with top executives regarding the organization’s strategic planning. They identify ways to increase the value of the organization’s employees and make sure that they are as efficient as possible. They are able to assess workers productivity and make changes to the organization’s structure to help it meet financial goals. They are able to make policies that affect the workers in an organization.
Calcunick, a travel agency, organizes its labor force into departments based on the category of clients the respective department serves. These departments include individual travel, couple travel, family travel, and group travel. In this scenario, Calcunick most likely follows _____.
Answer:
Customer departmentalization
Explanation:
Customer departmentalization is where the organization's activities are ready to respond to and interact with specific customers or customer groups.
In this case, agency organized its labor into different departments based on the customer needs
Martha can produce 70 quilts or 140 batches of chocolate chip cookies in a month. Jane can produce 8 quilts or 24 batches of chocolate chip cookies in a month. Distinguish between comparative advantage and absolute advantage.
Answer:
Martha can produce 70 quilts or 140 batches of chocolate chip cookies:
Opportunity cost of producing a quilt = (140 ÷ 70)
= 2 batches of chocolate chip cookies
Opportunity cost of producing a batch of chocolate chip cookie = (70 ÷ 140)
= 0.5 quilts
Jane can produce 8 quilts or 24 batches of chocolate chip cookies:
Opportunity cost of producing a quilt = (24 ÷ 8)
= 3 batches of chocolate chip cookies
Opportunity cost of producing a batch of chocolate chip cookie = (8 ÷ 24)
= 0.33 quilts
Therefore, the comparative advantage is as follows:
Martha has a comparative advantage in producing quilt because it has a lower opportunity cost of producing quilt than Jane.
Jane has a comparative advantage in producing chocolate chip cookies because it has a lower opportunity cost of producing chocolate chip cookies than Martha.
Absolute advantage:
Martha has an absolute advantage in producing both the commodities because she can produce more amount of both the goods from the same level of resources as compared to Jane.
A company purchased office supplies costing $3,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:
debit Office Supplies Expense, $3,600; credit Office Supplies, $3,600.
debit Office Supplies, $600; credit Office Supplies Expense, $600.
debit Office Supplies Expense, $2,400; credit Office Supplies, $2,400.
debit Office Supplies, $2,400; credit Office Supplies Expense, $2,400.
The balance in the prepaid rent account before adjustment at the end of the year is $12,000 and represents three months rent paid on December 1. The adjusting entry required on December 31 is:
debit Prepaid Rent, $4,000; credit Rent Expense $4,000.
debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.
debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.
debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.
Answer:
1. Debit supplies expense $2,400
Credit office supplies $2,400
2. Debit Rent expense $4,000
Credit Prepaid rent $4,000
Explanation:
1. During the time of acquisition, the company recorded it as an asset entirely, that is why they debited the whole amount as office supplies. At the end of the year, the company must recognize the expense portion of the supplies they have recorded at the beginning. The supplies on hand is only $600, therefore the company have used the $2,400 portion ($3,000 - $600). To recognize the expense portion, we must debit it and credit the asset account. So, debit supplies expense and credit office supplies in the amount of $2,400.
2. During December 1, the company uses asset method of recording the transaction that is why they have recorded the entire amount to prepaid rent. At the year end, the company must recognize the expire portion of the prepaid rent they have recorded previously. $12,000 represents 3 months of prepaid rent therefore, a rent expense of $4,000 per month occurs. The adjusting entry to record the expire portion of the prepaid rent is to debit Rent expense and credit Prepaid rent in the amount of $4,000.
Question 1 with 1 blankA man pulling a garage bag out of a can in a kitchen. Ramón Question 2 with 1 blankA woman in a bedroom putting a sheet on a bed. Rebeca Question 3 with 1 blankA man standing in a living room vacuuming a carpet. Mi tío Juan Question 4 with 1 blankA woman in a study dusts a desk with a cloth. Isabel
1. A man pulling a garbage bag out of a can in a kitchen.
- Ramón: This suggests that Ramon is the person performing the task of taking out the garbage. He's likely in a kitchen, which is a common place for garbage cans.
2. A woman in a bedroom putting a sheet on a bed.
- Rebeca: In this scenario, Rebecca is the person responsible for making the bed. She's in a bedroom, indicating that she's likely preparing the room for use.
3. A man standing in a living room vacuuming a carpet.
- Mi tío Juan: This statement tells us that Juan, who is referred to as "mi tío" (which means "my uncle" in Spanish), is the one vacuuming the living room. This suggests that he's taking care of the cleanliness of the living space.
4. A woman in a study dusts a desk with a cloth.
- Isabel: Isabel is the individual responsible for dusting the desk. The fact that she's in a study implies that she's likely tidying up a home office or a similar workspace.
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Final answer:
Responses address correcting grammatical errors in English sentences, focusing on subject-verb agreement, tense usage, and punctuation, which are essential components of English taught at the high school level.
Explanation:
The student is asking about various sentences and how to correct or improve them. This often involves identifying and correcting grammatical issues, such as subject-verb agreement, proper tense usage, and punctuation. These skills are key to mastering the English language and are commonly taught in high school level English classes.
For example, the sentence "There is the newspapers I was supposed to deliver" should be corrected to "There are the newspapers I was supposed to deliver", as the subject 'newspapers' is plural and requires the plural verb 'are'.
Another example is "My sister and brother cleans up after themselves." This sentence should be corrected to "My sister and brother clean up after themselves" to maintain the correct subject-verb agreement, with the plural subjects 'sister and brother' matching with the plural verb 'clean'.
In which case may a commercial real estate licensee be allowed to substitute training in other state and federal discrimination laws for fair housing continuing education?
Answer: After submitting a notarized affidavit stating that he does not and will not practice residential real estate to the board
Explanation: A notarized affidavit is an affidavit that can be used in any Court of Law as an evidence of a financial activity,Transfer of real estate etc. This affidavit must be done under Oath so that any false claims can be purnishable under the relevant laws guiding the land.
For the an affidavit to be accepted by the Court or for other establishments like schools it must be signed by a NOTARY( a person given the power to execute certain acts in legal matters such as witnessing and signing of documents).
At the recent school board meeting, five individuals spoke on both the merits and problems with full-day kindergarten as compared to half-day kindergarten. After the meeting, your friend Corrine tells you, "I don't think there is any way they can justify full-day kindergarten at this point. Did you hear all those statistics about the high costs versus low benefits?" You reply that there was good evidence on both sides of the issue. Corrine frowns and tells you that she doesn't remember it that way. By tuning out part of what was said at the meeting, Corrine appears to be exhibiting ________ listening.
Answer:
defensive listening
Explanation:
Defensive listening happens when an individual hears an apparently innocent commentary and takes it as a personal attack against himself/herself or their beliefs. Many times defense listening is caused because the individual constantly believes that other people are judging them or their ideas.
In this case, Corrine was offended by a commentary that was not intended to be a personal attack, but rather an opinion on a specific topic. Probably Corrine feels strongly against the idea of full-day kindergarten and that is why she felt attacked by a different opinion.
________ is the activity of two or more people working together to achieve a common goal, result, or work product.
Answer:
Collaboration is the correct answer.
Explanation:
Collaboration means working mutually with others to achieve a task and business profit.Collaboration empowers people to work together to reach a defined and common company goal.Collaboration is very important in business because makes workers more effective and increases their Motivation.Collaboration helps a business in many ways such as:
It Improves self-analysis.Increased Productivity.It helps in problem-solving.Improve worker Retention.A firm has an operating profit (EBIT) of $600 on sales of $1,000. Interest expense is $250 and taxes are $120. What is the times interest earned ratio?
Answer:
2.4 times
Explanation:
The formula to compute the times interest earned ratio is shown below:
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
= $600 ÷ $250
= 2.4 times
In order to find out the times interest earned ratio, we divide the operating profit or earnings before interest and taxes by the interest expense so that it could come