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It measures the riskiness of a company in the terms of the amount of debt it carries. It is measured by the assets over liabilities.

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It measures the riskiness of a company in the terms of the amount of debt it carries. It is measured by the assets over liabilities. It refers to: The degree of financial leverage Percentage of change in EPS Percentage of change in EBIT Solvency Off- Balance sheet financing Which of the following is not an advantage of the corporate form of business organization Easy to transfer ownership No personal liability Favorable tax treatment Easy to raise funds Under accrual accounting, expenses are recorded and reported only when they are incurred and paid at the same time if they are paid after they are incurred if they are paid before they are incurred when they are incurred whether or not cash is paid An intangible asset derives its value from the rights and privileges it provides the owner is converted into tangible asset during the operating cycle is worthless because it has no physical substance

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