MONETARY UNIT Definition

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MONETARY UNIT is the unit used to measure economic activity (e.g., U.S. $).

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CONTINUITY ASSUMPTION see GOING CONCERN CONCEPT.

CASH DEBT COVERAGE RATIO is the ratio of net cash provided by operating activities to average total liabilities, called the cash debt coverage ratio, is a cash-basis measure of solvency. This ratio indicates a company's ability to repay its liabilities from cash generated from operating activities without having to liquidate the assets used in operations.

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