Times Interest Earned Is Calculated By

Multiple Choice

Times interest earned is calculated by:

A) Multiplying interest expense times income.
B) Dividing interest expense by income before interest expense.
C) Dividing income before interest expense and any income tax by interest expense.
D) Dividing interest and income tax expense by income before interest and income tax expense.
E) Dividing income before interest expense by interest expense and income taxes.