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Gearing Calculation

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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August 30, 2020 at 4:20 pm #582754
kerrymzw
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When I was working on Kaplan Textbook Practice Question Section A Question 1 Vadener Plc, I came across calculating gearing ratio, in their sample answer, “total borrowing” = “long term liabilities” + “short term loans”. During actual exam, can I assume “long term liabilities” means long term borrowings?
August 30, 2020 at 4:44 pm #582758
John Moffat
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I do not have the Kaplan textbook.
However long-term liabilities does mean long-term borrowings. They mean exactly the same thing.
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