ECONOMICS
MONEY MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$78, 900
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$125, 360
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$31, 580
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$204, 260
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Detailed explanation-1: -On the balance sheet, a company’s total liabilities are generally split up into three categories: short-term, long-term, and other liabilities. Total liabilities are calculated by summing all short-term and long-term liabilities, along with any off-balance sheet liabilities that corporations may incur.
Detailed explanation-2: -It’s calculated by adding together your current and long-term liabilities. Knowing your total debt can help you calculate other important metrics like net debt and debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio, which indicates a company’s ability to pay off its debt.
Detailed explanation-3: -The total-debt-to-total-assets ratio is calculated by dividing a company’s total amount of debt by the company’s total amount of assets. If a company has a total-debt-to-total-assets ratio of 0.4, 40% of its assets are financed by creditors, and 60% are financed by owners’ (shareholders’) equity.
Detailed explanation-4: -These are “short-term liabilities” (due in a year or less) or “long-term liabilities” (due in more than a year). Add together all your liabilities, both short and long term, to find your total liabilities. Your total liabilities are the total debt your company owes.