What Are the Arguments for and Against Including Non-Financial Liabilities

question 7

Essay

What are the arguments for and against including non-financial liabilities when
calculating financial leverage ratios?

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Definitions:

Equitably

In a manner that is fair and impartial.

Equally

With uniformity, without difference; being the same in quantity, size, degree, or value.

Individualistic

Pertaining to an outlook or philosophy that emphasizes the importance of the individual and their autonomous decision-making over collective goals.

Collectivistic

Describing cultures or societies that prioritize the group over the individual, often emphasizing community, cooperation, and interdependence.