One can also use assets and liabilities to measure a company's outstanding debt. The debt ratio is an effective way to calculate the total assets funded by debts. It is calculated as: Debt Ratio = Liabilities / Assets Assets and liabilities can also be used to determine the value of the ...
current liabilities divided by current assets - OpenTuition.com Free resources for accountancy studentshttps://www.facebook.com/opentuitioncom
Related to assets:current assets,Assets and Liabilities 1property available for the payment of debts of a person or company in the event of insolvency or, in the case of a person, on death. Such property includes real estate and personal estate and property over which a person has a general...
The acid test, or quick, ratio equals the quick assets (cash, marketable securities, and accounts receivable) divided by current liabilities. Current assets equal the quick assets plus inventory and prepaid expenses. (This question assumes that the entity has no prepaid expenses.)? Given current ...
aThis is followed by the retained earnings statement, which is beginning retained earnings + net income - dividends = ending retained earnings or beginning retained earnings - net loss - dividends = ending retained earnings. The current ratio is current assets divided by current liabilities. The de...
ability of a business, it equals totalcurrent assetsdivided by totalcurrent liabilities. Some businesses remain solvent with a relatively lowcurrent ratio; others could be in trouble with an apparently goodcurrentratio. The general rule is that thecurrentratio should be 2:1 or higher, but ...
calculating this ratio, generally it equals operating profit (before interest and income tax) for a year divided by the total assets that are used to generate the profit. ROA is the key ratio to test whether a business is earning enough on its assets to cover its cost of capital. ROA is...
What is the current ratio as of December 31?a. 0.43 b. 0.67 c. 1.79 d. 0.93 正确答案:C 分享到: 答案解析: Choice "C" is correct. The current ratio is equal to current assets divided by current liabilities. This company's current assets include cash, accounts receivable and inventory, ...
Formula and Calculation of the Total Debt-to-Total Assets Ratio The total debt-to-total assets formula is the quotient of total debt divided by total assets. As shown below, total debt includes both short-term and long-term liabilities. ...
y total liabilities. C. Helps to assess a D. ompany’s ability to pay its E. ebts in the near future. F. Reveals that the business has a very good cash flow position if it is less than 1. G. Is current liabilities divided by current assets. 相关知识点: ...