Describe What the Results of Each of the Following Ratio

question 16

Essay

Describe what the results of each of the following ratio mean.
a.Current Ratio of 2
b.Debt to Equity Ratio of 3
c.Return on Sales of 10%

Know the procedures for evaluating the validity and accuracy of historical data.

Understand different types of case studies and their application in research.

Identify the transformation of personal documents in research settings.

Distinguish case studies from typical research interviewing techniques.

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Definitions:

Trial Balance

A worksheet used in accounting that consolidates all ledger balances into columns for debits and credits, with both columns having equal totals.

Liability Account

An accounting record that captures the amounts owed to others, representing claims against a company’s assets.

Owner's Equity

The portion of a company's assets that belongs to the owners after all liabilities have been subtracted.

Net Income

The total earnings of a company after deducting all expenses from revenues, representing the profit.