Interest Coverage Ratio = 7. It indicates that __________.

CS Executive · Corporate and Management Accounting · PYQS · June 2022
Interest Coverage Ratio = 7. It indicates that __________.
(A) Assets are 7 times of interest
(B) Sales are 7 times of interest
(C) EBIT is 7 times of interest
(D) Profit after tax is 7 times of interest

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Management Accounting

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