A Times Interest Earned Ratio of 11 Means That the Company's

Multiple Choice

A times interest earned ratio of 11 means that the company's:

A) net income is large enough to pay interest and taxes 11 times.
B) net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times.
C) net cash flow from operations is large enough to pay interest and taxes 11 times.
D) income before taxes and interest is large enough to pay interest 11 times.