FINANCIAL ACCOUNTING.

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the Student:
Author’s Note:

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Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................5
Answer to question 3:....................................................................................................................10
Answer to question 4:....................................................................................................................11
Answer to question 5:....................................................................................................................13
References and bibliography:........................................................................................................14

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Answer to question 1:

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Answer to question 2:

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Answer to question 3:

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Answer to question 4:

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Answer to question 5:
Current ratio expresses the short-term solvency and short-term liquidity of a business
organization. It can be observed that, the current ratio of the Handyman Service as has been
computed above is 0.75:1 which much below the standards of current ratio is. The ideal degree
of current ratio is 2:1; hence, the Handyman Services is having a poor short-term liquidity and
solvency (Williams & Dobelman 2017). On the other hand, the debt ratio shows how much of
the total assets are financed by the debt capital. It can be observed that, almost 37% of the total
assets are financed by the debt capital, and rest of the part of the assets is backed by the equity
capital.

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References and bibliography:
Harrison Jr, W. T., Horngren, C. T., & Thomas, C. W. (2014). Financial accounting. Pearson
Education.
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.
Nobes, C. (2014). International classification of financial reporting. Routledge.
Williams, E. E., & Dobelman, J. A. (2017). Financial statement analysis. World Scientific Book
Chapters, 109-169.