In terms of solvency,the higher the number of times interest is earned,the better.

Name: In terms of solvency,the higher the number of times interest is earned,the better.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The higher the number of times interest is earned (or the higher the interest coverage ratio), the better the company's ability to meet interest obligations and maintain solvency. A high interest coverage ratio indicates that the company generates enough earnings to cover its interest expenses multiple times over.

In Terms of Solvency,the Higher the Number of Times Interest