Explain what you understand by the accounting term capital, Financial Accounting

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Explain what you understand by the accounting term capital

1. Explain what you understand by the accounting term 'capital gearing' showing clearly the benefits of, and the potential problems associated with high gearing.

2. What benefits can result through the use of ratios and what limitations should be imposed on any conclusions drawn from their use?

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Financial Accounting: Explain what you understand by the accounting term capital

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Financial Accounting: Explain what you understand by the accounting term capital

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