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The Cash Flow on Total Assets Ratio Is Computed by Dividing

question 173

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The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.


Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Market Rate of Interest

The interest rate prevailing in the market for securities of similar risk and maturity.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover interest and principal.

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