Q: Explain how the debt/equity ratio indicates the same relative long
Explain how the debt/equity ratio indicates the same relative long-term debt-paying ability as does the debt ratio, only in a different form.
See AnswerQ: Why is it important to compare long-term debt ratios of
Why is it important to compare long-term debt ratios of a given firm with industry averages?
See AnswerQ: How should lessees account for operating leases? Capital leases? Include
How should lessees account for operating leases? Capital leases? Include both income statement and balance sheet accounts.
See AnswerQ: A firm with substantial leased assets that have not been capitalized may
A firm with substantial leased assets that have not been capitalized may be overstating its long-term debt paying ability. Explain.
See AnswerQ: Operating leases are not reflected on the balance sheet, but they
Operating leases are not reflected on the balance sheet, but they are reflected on the income statement in the rent expense. Comment on why an interest expense figure that relates to long-term operati...
See AnswerQ: Consider the debt ratio. Explain a position for including short-
Consider the debt ratio. Explain a position for including short-term liabilities in the debt ratio. Explain a position for excluding short-term liabilities from the debt ratio. Which of these approach...
See AnswerQ: Consider the accounts of bonds payable and reserve for rebuilding furnaces.
Consider the accounts of bonds payable and reserve for rebuilding furnaces. Explain how one of these accounts could be considered a firm liability and the other could be considered a soft liability.
See AnswerQ: Explain why deferred taxes that are disclosed as long-term liabilities
Explain why deferred taxes that are disclosed as long-term liabilities may not result in actual cash outlays in the future
See AnswerQ: When a firm guarantees a bank loan for a joint venture in
When a firm guarantees a bank loan for a joint venture in which it participates and the joint venture is handled as an investment, then the overall potential debt position will not be obvious from the...
See AnswerQ: How does the concept of consistency aid in the analysis of financial
How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?
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