It is called “Expanded” ratio because it includes:   the capital assets the net worth the variable expenditures it covers a longer period

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
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 It is called “Expanded” ratio because it includes:

 

  1. the capital assets
  2. the net worth
  3. the variable expenditures
  4. it covers a longer period
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