assume total debt = total liabilities (for now); could also use only interest bearing Equity Multiplier Total Assets/Total Equity Measures the portion of a company's assets that are financed by stockholder's equity; higher means that a company is using a high amount of debt to finance assets...
Typically, short-term assets and liabilities are recorded using the cost principle method, since a business may not have possession of them long enough for their values to significantly change prior to their liquidation or settlement. The purpose of the cost principle is to ensure that financial s...