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Remedy:AIf an proprietor planned to understand how income flowed into and away from the business, which financialstatement would theowner use?

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All of the next statements concerning the ratio of liabilities to operator’s fairness are legitimate excepta.A ratio of one implies that liabilities equivalent proprietor’s equity.b.Firms can use this ratio but substitute whole stockholders’ equity for complete owner’sequity.

Discuss internal and external consumers of accounting data.What regions of accounting providethem withinformation?Give an illustration of the type of report Every single style of person could use.

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All calculations are estimates and presented for informational applications only. Actual amounts could range.

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c.The higher this ratio, the greater capable a company is to withstand weak organization circumstances andpay creditors.d.The lessen this ratio, the better capable a company is to face up to bad small business circumstances andpay creditors.Response:C

click here Presented the following knowledge:Compute the ratio of liabilities to operator’s equity for each year.Round to two decimal destinations.

a.revenue statementb.equilibrium sheetc.statement of cash flowsd.statement of retained earningsANSWER:AIf an operator wanted to understand how money flowed into and from the corporation, which financialstatement would theowner use?