In computing debt to tangible net worth,which of the following is not subtracted in the denominator?
A)Copyrights
B)Goodwill
C)Patents
D)Investments
E)Trademarks

Question

Quizplus · Accepted Answer

Investments are not subtracted in the denominator when computing debt to tangible net worth. Tangible net worth includes only physical assets such as property, equipment, and inventory, minus any liabilities. Intangible assets such as copyrights, patents, trademarks, and goodwill are excluded from tangible net worth because they do not have a physical value that can be easily liquidated. Similarly, investments are not included in tangible net worth because they typically represent ownership in another company or entity, rather than a physical asset owned by the company itself.

In Computing Debt to Tangible Net Worth,which of the Following