The higher the number of times interest charges are earned ratio,the better the creditors' protection.

Name: The higher the number of times interest charges are earned ratio,the better the creditors' protection.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A higher times interest charges earned ratio means that the company has more earnings available to cover interest payments, which is a positive sign for creditors as it indicates a lower likelihood of default. Therefore, a higher ratio provides better protection for creditors.

The Higher the Number of Times Interest Charges Are Earned