A. Fixed assets are sold for cash. B. Long-term debt is issued to pay off current liabilities. OC. Accounts receivable are collected. D. Cash is used to pay off accounts payable. E. A bank loan is obtained, and the proceeds are credited to the firm's checking account 8. Earnings per share is affected by A. net income B. number of shares C. dividends D. A & B only E. A, B & C
A. Fixed assets are sold for cash. B. Long-term debt is issued to pay off current liabilities. OC. Accounts receivable are collected. D. Cash is used to pay off accounts payable. E. A bank loan is obtained, and the proceeds are credited to the firm's checking account 8. Earnings per share is affected by A. net income B. number of shares C. dividends D. A & B only E. A, B & C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer number 7 and 8 only no need to explain. Thanks!
![7. Other things held constant,
which of the following will not
affect the current ratio, assuming
an initial current ratio greater
than 1.0?
A. Fixed assets are sold for cash.
B. Long-term debt is issued to pay off
current liabilities.
C. Accounts receivable are collected.
D. Cash is used to pay off accounts
payable.
E. A bank loan is obtained, and the
proceeds are credited to the firm's
checking account
8. Earnings per share is affected
by
A. net income
B. number of shares
C. dividends
D. A & B only
E. A, B & C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40aa2789-aa91-472c-9057-4707469a4ddf%2Fdaa69c72-1d34-4256-8ac1-72f8d0d12e7d%2F7d9nk9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. Other things held constant,
which of the following will not
affect the current ratio, assuming
an initial current ratio greater
than 1.0?
A. Fixed assets are sold for cash.
B. Long-term debt is issued to pay off
current liabilities.
C. Accounts receivable are collected.
D. Cash is used to pay off accounts
payable.
E. A bank loan is obtained, and the
proceeds are credited to the firm's
checking account
8. Earnings per share is affected
by
A. net income
B. number of shares
C. dividends
D. A & B only
E. A, B & C
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