Examlex

Solved

Using the Formula, Gearing Ratio = Long-Term Liabilities/ (Shareholders' Funds

question 4

Multiple Choice

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) × 100/1, calculate the gearing ratio from the following information. Long-term liabilities $18m, Shareholders' funds $14m.


Definitions:

Foreign Operation

A business or branch of a company that operates in a country different from the country where the company is headquartered.

Local Operations

Business activities carried out within a company's domestic geographical area.

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its transactions.

Foreign Subsidiary

A company owned in part or whole by another company from a different country, operating under the laws of the country where it is located.

Related Questions