the times interest earned ratio reflects: multiple choice a companys ability to pay its operating expenses…

the times interest earned ratio reflects: multiple choice a companys ability to pay its operating expenses on time. a companys ability to pay interest. a companys profitability. the relation between income and assets. the relation between assets and liabilities.

the times interest earned ratio reflects: multiple choice a companys ability to pay its operating expenses on time. a companys ability to pay interest. a companys profitability. the relation between income and assets. the relation between assets and liabilities.

Answer

Brief Explanations:

The times - interest - earned ratio (also known as interest - coverage ratio) is calculated as earnings before interest and taxes (EBIT) divided by interest expense. It measures a company's ability to pay the interest on its debt. Higher ratios indicate a greater ability to meet interest obligations.

Answer:

B. A company's ability to pay interest.