The financial ratio measured as earnings before interest and taxes, plus depreciation, divided by interest expense, is the:
A. cash coverage ratio.
B. debt-equity ratio.
C. times interest earned ratio.
D. gross margin.
E. total debt ratio.
Answer: A. cash coverage ratio.
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A basket purchase occurs when a company agrees to buy inventory weeks or months in advance.
a. true b. false
Which of the following statements regarding audit evidence would be the least appropriate for an internal auditor to make?
a) "I consider the level of risk involved when deciding the type of evidence I will gather." b) "I corroborate information obtain from management whenever possible." c) "I select procedures that will provide both sufficient and appropriate evidence regarding the audit objectives." d) "I am always absolutely certain about the conclusions I reach based on the evidence I examined."