The times-interest-earned ratio measures the number of times that operating income can pay interest expense.

Name: The times-interest-earned ratio measures the number of times that operating income can pay interest expense.
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Quizplus · Accepted Answer

The times-interest-earned ratio is calculated by dividing operating income by interest expense, and it indicates how many times a company's operating income covers its interest expense. Therefore, the statement is true.

The Times-Interest-Earned Ratio Measures the Number of Times That Operating