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Users of financial statements need to distinguish between earnings increasing due to
core operations versus items such as tax rate deductions.
The three cost flow assumptions most frequently used in the U.S. are , , and .
ratios measure the liquidity of specific assets and the efficiency of managing assets.
Analyze the following common size balance sheet:
The debt ratio considers the proportion of all stockholders' equity that is financed with
debt.
financial statements are projections of financial statements based on a set of
assumptions regarding future revenues, expenses, level of investments in assets,
financing methods and costs, and working capital management.
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