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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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