which-of-the-following-best-describes-the-purpose-of-the-times-interest-earned-r

Question

Which of the following best describes the purpose of the times interest earned ratio?

Accepted Answer

To assess a company's ability to pay interest expenses from its operating income.

Answer

To evaluate a company's overall profitability.

Answer

To determine a company's market competitiveness.

Answer

To measure a company's liquidity position.