A company's debt ratio is computed as total assets minus total liabilities divided by total assets....
A company's debt ratio is computed as total assets minus total liabilities divided by total assets. TRUE/ FALSE ??
Homework Answers
The answer is FALSE
Debt ratio represents the ratio of capital financed through
debt/loan
It is computed as Total Debt/Total Assets
Total Assets - Total Liabilities = Equity
and dividing it by Total Assets will give us Equity Ratio
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A company's debt ratio is computed as total assets minus total
liabilities divided by total assets....
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed...
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets...
1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets divided by total liabilities c. total assets minus total liabilities d. current assets divided by current liabilities 2) The common size income statement reports each income statement item as a percentage of a. net sales b. net income c. gross sales d. total assets
Question 10 (1 point) The acid-test ratio is: Current assets minus inventory divided by current liabilities...
Question 10 (1 point) The acid-test ratio is: Current assets minus inventory divided by current liabilities minus accounts payable. Current assets minus inventory and prepaid items divided by current liabilities. Cash divided by accounts payable. The liquidity ratio divided by the equity ratio. Previous Page Next Page Pa Submit Quiz 0 of 15 questions saved Question 11 (1 point) Management's Report on Internal Control Over Financial Reporting: Contains personal certification of the financial statements by the company's executives. Contains a...
The liquidity ratio that consists of current assets divided by current liabilities is called the current...
The liquidity ratio that consists of current assets divided by current liabilities is called the current ratio. True or False
1. The quick ratio, measured by current assets less inventories divided by current liabilities, is also...
1. The quick ratio, measured by current assets less inventories divided by current liabilities, is also referred to as an "acid test" ratio and provides a measure of a company's ability to meet current obligations. a. True b. False 2. Shorter-term cash budgets, in general, are used for actual cash control while longer-term budgets are used primarily for planning purposes. a. True b. False 3. A just-in-time system of inventory control requires that manufacturers coordinate production with suppliers so that...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus inventories divided by current liabilities. B) Examples of liquidity ratios include the current ratio, the cash coverage ratio, and the quick ratio. C) The current ratio is current assets divided by current liabilities. D) Inventory turnover equals cost of goods sold divided by inventory.
Which of the following statements is TRUE? A) The current ratio is current assets divided by...
Which of the following statements is TRUE? A) The current ratio is current assets divided by current liabilities. B) Total asset turnover is net income divided by total assets. C) The cash coverage ratio equals cash divided by current liabilities. D) The quick ratio equals current assets - current liabilities divided by current liabilities.
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets...
The debt ratio is calculated by dividing: A. total debt by total assets. B. total assets by long-term liabilities. C. long-term liabilities by total assets. D. total assets by total debt.
Answer the following (True or False): 1. Current liabilities divided by current assets gives the current...
Answer the following (True or False): 1. Current liabilities divided by current assets gives the current ratio: 2. The quick ratio is the same as the current ratio except that, in the quick ratio, the accounts receivable are not included in the current assets: 3. The total liabilities to total equity ratio is one of several long-term solvency ratios. 4. High financial leverage is indicated by a low debt to equity ratio 5. A company may have a net income...
the market value of a firms stock equals its total assets minus its total liabilities true...
the market value of a firms stock equals its total assets minus its total liabilities true or false
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
Question 10 (1 point) The acid-test ratio is: Current assets minus inventory divided by current liabilities minus accounts payable. Current assets minus inventory and prepaid items divided by current liabilities. Cash divided by accounts payable. The liquidity ratio divided by the equity ratio. Previous Page Next Page Pa Submit Quiz 0 of 15 questions saved Question 11 (1 point) Management's Report on Internal Control Over Financial Reporting: Contains personal certification of the financial statements by the company's executives. Contains a...
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