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  2. What are assets, liabilities and equity? - AOL

    www.aol.com/finance/assets-liabilities-equity...

    As a general rule, assets should equal liabilities plus equity. Assets. Anything that you can attribute a dollar amount to that adds value to your business. Liabilities. The debt your company owes ...

  3. Total Debt-to-Total Assets Ratio: What It Is and Why It ... - AOL

    www.aol.com/total-debt-total-assets-ratio...

    You would then divide the $40 million in total liabilities by the $100 million in total assets. That will give the company a total-debt-to-total-assets ratio of 0.40, or 40% when multiplied by 100 ...

  4. Balance sheet - Wikipedia

    en.wikipedia.org/wiki/Balance_sheet

    The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities. [4] Another way to look at the balance sheet equation is that total assets equals liabilities plus owner's equity.

  5. Account (bookkeeping) - Wikipedia

    en.wikipedia.org/wiki/Account_(bookkeeping)

    The classification of accounts into real, personal and nominal is based on their nature i.e. physical asset, liability, juristic entity or financial transaction. The further classification of accounts is based on the periodicity of their inflows or outflows in the context of the fiscal year: Income is a short term inflow during the fiscal year.

  6. Accounting liquidity - Wikipedia

    en.wikipedia.org/wiki/Accounting_liquidity

    The quick ratio is calculated by deducting inventories and prepayments from current assets and then dividing by current liabilities, giving a measure of the ability to meet current liabilities from assets that can be readily sold. A better way for a trading corporation to meet liabilities is from cash flows, rather than through asset sales, so ...

  7. Secured vs. unsecured debt: What’s the difference? - AOL

    www.aol.com/finance/secured-vs-unsecured-debt...

    Still, you risk losing your assets if you experience financial hardship and fall behind on the loan payments. Unsecured debt. Unsecured debt is a common form of debt that’s not backed by collateral.

  8. Debt-to-equity ratio - Wikipedia

    en.wikipedia.org/wiki/Debt-to-equity_ratio

    On a balance sheet, the formal definition is that debt (liabilities) plus equity equals assets, or any equivalent reformulation. Both the formulas below are therefore identical: A = D + E E = A − D or D = A − E. Debt to equity can also be reformulated in terms of assets or debt: D/E = ⁠ D / A − D ⁠ = ⁠ A − E / E ⁠.

  9. Types of Risk-Affecting Assets and Liabilities - AOL

    www.aol.com/finance/types-risk-affecting-assets...

    The technique’s goal is to solve the mismatches between assets and liabilities. Asset vs. liability management is one financial analysis technique available to risk managers to accomplish this ...