Fundamental Accounting Principles
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
Question
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Chapter 2, Problem 2BTN
To determine

Concept Introduction:

• Debt Ratio is the ratio of debt to total assets. It measures the extent of company’s leverage. It can be expressed in decimal or percentage.

• Financial Leverage is the degree to which a company uses debt to finance its capital requirement. The more is the debt financing the higher is the financial ratio.

Requirement 1:

To Determine – Debt Ratio of Apple for Current and Previous Year

To determine

Requirement 2:

To Determine – Debt Ratio of Google for Current and Previous Year

To determine

Requirement 3:

To Determine – Company having higher degree of Financial Leverage

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Chapter 2 Solutions

Fundamental Accounting Principles

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