One weakness of the times interest earned ratio is that it includes only the annual interest expense as a finance expense and ignores other financing items such as lease payments that must be paid.

Name: One weakness of the times interest earned ratio is that it includes only the annual interest expense as a finance expense and ignores other financing items such as lease payments that must be paid.
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Question

Quizplus · Accepted Answer

The statement accurately identifies a weakness of the times interest earned ratio.

One Weakness of the Times Interest Earned Ratio Is That