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If a promissory note is dishonored,the payee should record interest income.
Du Pont Identity
A formula that breaks down Return on Equity (ROE) into three component parts: profit margin, asset turnover, and financial leverage, to analyze a company’s financial performance.
Profit Margin
A fiscal indicator calculating the proportion of income left once total costs are subtracted from revenues.
Equity Multiplier
A financial ratio indicating the proportion of a company's assets that are financed by stockholder's equity.
Long-Term Debt Ratio
A financial ratio that shows the proportion of a company's long-term debt relative to its total capital.
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