The following is a selected list of ratios comparing Long Inc. and Circular Corporation for a recent

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The following is a selected list of ratios comparing Long Inc. and Circular Corporation for a recent year:
The following is a selected list of ratios comparing Long

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 (b) is an intra company comparison or an intercompany comparison?

Solvency
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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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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