ACC 400 AID Successful Learning / acc400aid.com ACC 400 AID Successful Learning / acc400aid.com | Page 16

12.
a. acid-test ratio.
b. current ratio.
c. times interest earned ratio.
d. asset turnover ratio.
The times interest earned ratio is computed by dividing
a. net income by interest expense.
b. income before income taxes by interest expense.
c. income before interest expense by interest expense.
d.
income before interest expense and income taxes
by interest expense.