The ratio that measures the company's ability to meet required interest payments is the:
A)Debt-to-equity ratio.
B)Current ratio.
C)Price/Earnings ratio.
D)Times interest earned ratio.

Name: The ratio that measures the company's ability to meet required interest payments is the: A)Debt-to-equity ratio. B)Current ratio. C)Price/Earnings ratio. D)Times interest earned ratio.
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Question

Quizplus · Accepted Answer

The times interest earned ratio indicates how many times the company's interest expense was covered by the operating results.

The Ratio That Measures the Company's Ability to Meet Required