The following is a selected list of ratios comparing Long Inc. and Circular Corporation for a recent
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Instructions
(a) Classify each of the above ratios as a liquidity (L), solvency (S), or profitability (P) ratio.
(b) For each of the above ratios, indicate whether Long's ratio is better (B) or worse (W) than that reported by Circular.
(c) Identify whether the comparison done in part (b) is an intracompany comparison or an intercompany comparison.
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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a b Ratio Classification Long compared to Circular Acidtest ratio L B Asset ...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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