Hello!
Debt ratio is liabilities/net worth. So 173/350 debt ratio or 0.494 percent debt ratio. Meaning that almost half their net worth is tied up in debt.
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Answer:
a. Sales budget
Explanation:
Sales Budget is the starting point for the Budgetary process. The sales budget projects the number of units to be sold to meet the firms targets.
These units will then need to be used to populate the production required by the firm to meet its sales needs <em>plus</em> any inventory balances.
Answer:
The going-concern assumption - one reason for valuing assets such as buildings and equipment at cost rather than at their current market values is the assumption that the business will use these assets rather than sell them.
Explanation:
Accounting valuation is the process by which a company compares it's assets and liabilities for reporting purposes.
The generally accepted accounting practices (GAAP) are a set of rules that guide accountants in recording and reporting financial transactions.
These principles ensure uniformity in how transactions are treated by all accountants.
There are 5 of these principles:
- Revenue principle
- Expense principle
- Matching principle
- Cost principle
- Objectivity principle
The going concern assumption is not part of GAAP but rather is an accounting concept that assumes that a business will remain in operation.
In financial statements it is required disclosures are made when a business is going to fail. In this instance it is no longer a going concern
Answer:
The accrual principle
The main purpose of adjusting entries is to update the accounts to conform with the accrual concept. At the end of the accounting period, some income and expenses may have not been recorded, taken up or updated; hence, there is a need to update the accounts.
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