Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)EBIT stands for earnings before income taxes.
_____ b)EBIT is used in the computation of the return-on-assets ratio.
_____ c)A low times-interest-earned ratio is a sign of a high-risk company.
_____ d)Dividends are deductible in the determination of taxable income.
_____ e)Interest is deducted on the income statement but is ignored on the tax return.