DEBT MANAGEMENT RATIO Definition

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DEBT MANAGEMENT RATIO examine the degree to which a firm uses debt financing or financial leverages.

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INDUCTIVE ACCOUNTING THEORY (scientific method) assumes accounting standards are somewhat like evolution of a species in nature --- survival of the fittest. It relies heavily upon controlled experimentation (e.g., behavioral accounting research) and statistical testing (e.g., capital markets "events" studies of the impact of accounting information on market prices and volume of transactions).

INCOMPETENCE is lack of physical or intellectual ability or qualifications.

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