1. Which of the following ratios indicate high leverage for a corporation? a. High working capital b. High current ratio 2. Which of the following actions does not decrease working capital? a. Paying off long-term bonds three years before the maturity date b. Declaring dividend c. Paying dividend d. Buying machinery for cash 3. Which of the following are changed when a corporation buys equipment for cash? c. High gross margin d. High debt-to-equity ration c. Current Assets d. Shareholder's Equity а. Total Assets b. Total Liabilities
1. Which of the following ratios indicate high leverage for a corporation? a. High working capital b. High current ratio 2. Which of the following actions does not decrease working capital? a. Paying off long-term bonds three years before the maturity date b. Declaring dividend c. Paying dividend d. Buying machinery for cash 3. Which of the following are changed when a corporation buys equipment for cash? c. High gross margin d. High debt-to-equity ration c. Current Assets d. Shareholder's Equity а. Total Assets b. Total Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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