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A note of caution in interpreting the debt ratio is that

maryanne.jones3

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A note of caution in interpreting the debt ratio is that

A note of caution in interpreting the debt ratio is that

▸ financing arrangements, such as leases, may be off-balance sheet arrangement and not be classified as debt on the balance sheet.

▸ financing arrangements, such as leases, may be classified as debt when in fact they do not require interest payments.

▸ long-term debt may be inflated because of a desire to reduce the current ratio.

▸ all debt decreases liquidity ratios.

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Managerial Accounting

Edition: 4^th

Author: Davis

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cskeen80

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maryanne.jones3 Author

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A year ago

Good timing, thanks!

gage

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Thank you, thank you, thank you!

sweetalia

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You make an excellent tutor!

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