Q27. Debt to equity ratio How is the debt to equity ratio calculated? A27. Debt to equity ratio = Total liabilities / Total stockholders’ equity
Q28. Income taxes payable On December 31, 20×1, Entity A estimated the income taxes expense for 20×1 as $260,000. Prepare a journal entry to record
Q27. Salaries payable Entity A pays salaries on the 20th of each month. Monthly salaries expense is $180,000. On December 20, 20×1, Entity A paid
Q26. Notes payable On December 6, 20×1, Entity A purchased equipment and issued a non-interest-bearing promissory note with the following information. (a) Face amount of
Q26. Working capital ratio How is the working capital ratio calculated? A26. Working capital = Current assets – Current liabilities Working capital ratio = Working
Q25. Quick ratio How is the quick ratio calculated? A25. Quick ratio = Quick assets / Current liabilities Quick assets = Cash + Marketable securities