ACTG Chapter 3 Ratios

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Last updated 8:04 PM on 10/22/25
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4 Terms

1
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Current Ratio

Current Assets/Current Liabilities

2
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Acid Test Ratio

Quick Assets/Current Liabilities

3
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Debt to Equity ratio

Total Liabilities/Shareholders Equity

4
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Times interest earned ratio

Net Income + Interest Expense + Income Tax Expense/Interest Expense

<p>Net Income + Interest Expense + Income Tax Expense/Interest Expense</p>