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  2. 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 ...

  3. 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 ...

  4. Debt ratio - Wikipedia

    en.wikipedia.org/wiki/Debt_ratio

    The debt ratio or debt to assets ratio is a financial ratio which indicates the percentage of a company's assets which are funded by debt. [1] It is measured as the ratio of total debt to total assets, which is also equal to the ratio of total liabilities and total assets: Debt ratio = ⁠ Total Debts / Total Assets ⁠ = ⁠ Total Liabilities ...

  5. 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.

  6. How Accounts Payable Are Recorded on a Balance Sheet - AOL

    www.aol.com/finance/accounts-payable-recorded...

    Here’s how accounts payable stack up against other common types of liabilities: Long-term debt: If you financed a property for business use with a 15-year mortgage, that’s a liability. But the ...

  7. 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 ...

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

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

    As an individual, you want to match the maturities of your assets and liabilities to be able to meet your debt obligations. Types of Risk-Affecting Assets and Liabilities assets vs liabilities

  9. 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.