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A company has assets of $350,000 and total liabilities of $200,000. Its debt-to-equity ratio is 0.6.

Unearned revenues are current liabilities.

A company has assets of $350,000 and total liabilities of $200,000. Its debt-to-equity ratio is 0.6.

Depreciation is higher in earlier years and income is lower in the later years when using straight-line versus accelerated methods.

The use of debt financing ensures an increase in return on equity.

A patent is an exclusive right granted to its owner to manufacture and sell a patented device or to use a process for 20 years.

Indenture refers to a bond’s legal contract; debenture refers to an unsecured bond.

The use of debt financing ensures an increase in return on equity.

A patent is an exclusive right granted to its owner to manufacture and sell a patented device or to use a process for 20 years.

Operating leases are long-term or noncancelable leases in which the lessor transfers substantially all the risks and rewards of ownership to the lessee.