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What is Creditors Equity

What is Creditor's Equity. Also write down its formula.

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Creditor's Equity: In Accounting, Creditor's equity displays the relationship among total amount of debt and total amount of assets. Creditors’ equity can be computed by dividing total amount of debt with total amount of assets. This is as well termed as creditor's equity ratio.

Creditor's equity ratio = Total Debt/Total Assets

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