COMPOUND INTEREST PRINCIPLE Definition

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COMPOUND INTEREST PRINCIPLE is where the interest is computed on principal plus interest earned in previous periods.

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CURRENT DEBT TO TOTAL DEBT shows Current Liabilities as a percent of Total Debt. Smaller firms carry proportionally higher level of current debt to total debt than larger firms. Formula: Total Current Liabilities / Total Liabilities

PAID IN SURPLUS see PAID-IN-CAPITAL.

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