The Balances for the Accounts of Lance's Consulting Firm,Inc

question 52

Short Answer

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.

-Calculate the debt ratio.

---

Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses of an accounting period, to determine the net income or loss.

Ratio Based

A method or analysis that involves the comparison of two or more numbers to evaluate the performance, condition, or relationship of different financial aspects of a business.

Net Income

The net income of a business following the subtraction of all costs and taxes from its total revenue.

Capital Balances

This represents the amount of funds that shareholders have invested in a company, often reflected in the equity section of a balance sheet.