The higher the value of__________ratio, the better able the firm is to fulfill its interest obligations.
A) debt
B) times interest earned
C) average payment period
D) average collection period

Question

The higher the value of__________ratio, the better able the firm is to fulfill its interest obligations. 
A) debt
B) times interest earned
C) average payment period
D) average collection period

Quizplus · Accepted Answer

The times interest earned ratio measures a firm's ability to meet its interest obligations. A higher ratio indicates that the firm is better able to fulfill its interest obligations.

The Higher the Value Of__________ratio, the Better Able the Firm