Hi There,
I’m struggling to find information on Q5(i) re Accounting Equation. Could you please point me in the right direction of where to look?
Thank You!
Hi Tammy,
Accounting Equation: (Assets less Liabilities) Net assets = Equity
In this question , Total debts (Loans , bank overdrafts , creditors etc.)= Liabilities.
Liabilities = half of assets , ie 50% assets . apply these amounts to above Accounting equation to calculate Total debt to total equity.
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