Bookkeeping

This result indicates that XYZ Corp has $3.00 of debt for every dollar of equity. Banks also tend to have a lot of fixed assets in the form of nationwide branch locations. The other important context here is that utility companies are often natural monopolies. As a result, there’s little chance the company 5 necessary …

Debt-to-Equity Ratio Formula Example Analysis Read More »

As a result of the transaction, an asset in the form of merchandise increases, leading to an increase in the total assets. At this point, let’s consider another example and see how various transactions affect the amounts of the elements in the accounting equation. This long-form equation is called the expanded accounting equation. This arrangement …

Definition, Explanation and Examples Read More »