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  2. Accounting equation - Wikipedia

    en.wikipedia.org/wiki/Accounting_equation

    Assets Liabilities Equity Explanation 1 + 6,000 + 6,000 Issuing capital stock for cash or other assets 2 + 10,000 + 10,000 Buying assets by borrowing money (taking a loan from a bank or simply buying on credit) 3 − 900 − 900 Selling assets for cash to pay off liabilities: both assets and liabilities are reduced 4 + 1,000 + 400 + 600

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

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

    owner’s equity = assetsliabilities For example, if a company with five equal-share owners has $1.2 million in assets but owes $485,000 on a term loan and $120,000 for a semi-truck it ...

  4. Debt ratio - Wikipedia

    en.wikipedia.org/wiki/Debt_ratio

    Debt ratio = ⁠ Total Debts / Total Assets ⁠ = ⁠ Total Liabilities / Total Assets ⁠ Financial analysts and financial managers use the ratio in assessing the financial position of the firm. Companies with high debt to asset ratios are said to be highly leveraged, and are associated with greater risk. A high debt to asset ratio may also ...

  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. 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 ...

  7. Assets vs. Expenses: Understanding the Difference - AOL

    www.aol.com/finance/assets-vs-expenses...

    This ensures that the accounting equation (assets = liabilities + equity) remains balanced. Assets are tracked on the balance sheet to a dedicated account. For instance, if your restaurant ...

  8. Asset - Wikipedia

    en.wikipedia.org/wiki/Asset

    Liabilities = Assets − Equity Equity = AssetsLiabilities. Assets are reported on the balance sheet. [11] On the balance sheet, additional sub-classifications are generally required by generally accepted accounting principles (GAAP), which vary from country to country. [12] Assets can be divided into current and non-current (a.k.a. fixed ...

  9. Debt-to-equity ratio - Wikipedia

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

    The debt-to-total assets (D/A) is defined as D/A = ⁠ total liabilities / total assets ⁠ = ⁠ debt / debt + equity + (non-financial liabilities) ⁠ It is a problematic measure of leverage, because an increase in non-financial liabilities reduces this ratio. [3] Nevertheless, it is in common use.