It can be interpreted as the proportion of a company’s assets that are financed by debt. Debt ratio is a metric that measures a company’s total debt, as a percentage of its total assets. A high debt ratio indicates that a company is highly leveraged, and may have borrowed more money than it can easily

The other variance computes whether or not actual production was above or below the expected production level. As an example of an unfavorable fixed overhead spending variance, a passing tornado delivers a glancing blow to the production facility of Hodgson Industrial Design, resulting in several hundred roofing tiles being blown off. This cost is part

Similarly, lease liabilities for finance leases are required to be presented separately from lease liabilities from operating leases and from other liabilities. In addition, ROU assets are presented as noncurrent in the lessee’s balance sheet, consistent with how other amortizing assets such as PP&E are presented. However, the related lease liabilities are subject to current

Successful businesses track everything that goes into and comes out of their operations. One way that entrepreneurs will do this is through their cash flow statement—a living document that follows the cash coming into and leaving your business. To wrap up, the cash flow from financing is the third and final section of the cash

But well-funded AI corporate lobbyists are successfully convincing lawmakers to water down these protections. Take, for instance, AI’s ability to bring big-business solutions to small enterprises, Johnson said. AI gives smaller firms access to more and less costly marketing, content creation, accounting, legal and other functional expertise than they had when only humans could perform

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