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Concept introduction:
Asset of a company means the item of a company which generates future
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 1:
We have to determine the
Concept introduction:
Asset of a company means the item of a company which generates future cash flows and economic benefits whereas liabilities of an organization represent a future obligation of an organization.
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 2:
We have to determine the debt ratio and return on asset.
Concept introduction:
Asset of a company means the item of a company which generates future cash flows and economic benefits whereas liabilities of an organization represent a future obligation of an organization.
Debt ratio is a type of solvency ratio which measures organization total liabilities in terms of percentage of its total assets.
Return on asset is a type of ratio that measures percentage of profit an organization earns from its assets.
Requirement 3:
We have to determine whether bank loan of $30,000 is a good option or not.
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Chapter D Solutions
Managerial Accounting
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
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