The Ratio Times Interest Earned Is Calculated As

Multiple Choice

The ratio times interest earned is calculated as:

A) (interest expense + capitalized interest) ÷ income before interest and income taxes.
B) net income ÷ (interest expense + capitalized interest) .
C) income before interest and income taxes ÷ (interest expense + capitalized interest) .
D) (interest expense + capitalized interest) ÷ net income.
E) income before interest and income taxes ÷ (interest income + capitalized interest) .