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QLDAccountingQuick questions
Unit 4: Monitoring a business (company accounting and analysis)
Quick questions on Financial stability and decision-making in QCE Accounting Unit 4
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is debt to equity ratio?Show answer
Debt to equity = (Total liabilities / Total equity) x 100, or expressed as a ratio.
What is debt ratio?Show answer
Debt ratio = (Total liabilities / Total assets) x 100
What is times interest earned (interest coverage)?Show answer
Times interest earned = Profit before interest and tax / Interest expense
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