What is Creditors Equity
What is Creditor's Equity. Also write down its formula.
Expert
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
Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of
The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.
Uncertainty of the exchange rate does not essentially means that the firms face exchange risk exposure. Explain this scenario.
A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)
Write an article why Supplier selection has been a critical decision to be made for any company?
Acquisition Entry and Consolidation Working Paper On January 31, 2014, Phoenix, Inc. acquired all of the outstanding common stock of Spark Corporation for $400 million cash plus 25 million shares of Phoenix' $10 par value common stock having a market value of $90 per share. Registration fees were $
Explain criteria for the ‘good’ international monetary system.
To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain
Define Sole Trade in brief?
A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet
18,76,764
1935169 Asked
3,689
Active Tutors
1413927
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!