State the importance of gearing in accountinggearing is one, Ask an Expert

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state the importance of gearing in accounting

Gearing is one of the most extensively used terms in accounting. Gearing is the relationship between debt and equitywhich means that how much of total capital is in the form of debt andequity. Gearing is relevant to long-term financial stability of a business.

Gearing (also termed as capital gearing) is calculated from a company's financing structure as demonstrated in its statement of financial position.

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Financial Management, Finance

Category:- Financial Management
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