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Oksi-84 [34.3K]
2 years ago
14

The debt to owners' equity ratio is a common type of liquidity ratio

Business
1 answer:
s344n2d4d5 [400]2 years ago
5 0

Answer: No

Explanation: D/E is a solvency ratio. Liquidity ratios are quick and current ratios.

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Garcia Company issues 11.5%, 15-year bonds with a par value of $450,000 and semiannual interest payments. On the issue date, the
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                                  Journal Entry

Date   Account Titles and Explanation         Debit          Credit

Jan 1   Cash                                                    $511,875

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