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Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › Interest coverage ratio uses profit before inter…

Interest coverage ratio uses profit before interest and tax divided by what?

ACurrent liabilities
BTotal assets employed
CInterest on long-term debt
DPaid-up equity capital
Answer & Solution
Correct answer: C. Interest on long-term debt
It shows how many times the interest on long-term debt is covered by profit.
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