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maryanne.jones3 maryanne.jones3
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A year ago
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

Managerial Accounting


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cskeen80cskeen80
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