CASH FLOW / CURRENT PORTION OF LONG TERM DEBT Definition

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CASH FLOW / CURRENT PORTION OF LONG TERM DEBT is a measure of the firms ability to meet its obligations with internally generated cash.

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REASONABLE PERSON is a phrase to denote a hypothetical person who exercises qualities of attention, knowledge, intelligence, and judgment that society requires of its members for the protection of their interest and the interest of others.

EQUITY-TO-ASSET RATIO expresses the proportion of total assets financed by the owner's equity capital. It is the reciprocal of the debt-to-asset ratio.

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