Debt To Equity Data: 2018: 0.27x 2019: 0.23x 2020: 0.21x 2021: 0.18x 2022: 0.17x   Question: which of the following transactions and events would result in a deterioration in Debt to Equity in year 2021? 1) a share buy-back 2) receiving cash for unearned sales revenue 3) the purchase of machinery financed entirely by a reducing-balance bank loan 4) A and B only 5) A and C only 6) B and C only 7) All of the above 8) None of the abov

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Debt To Equity Data:

2018: 0.27x

2019: 0.23x

2020: 0.21x

2021: 0.18x

2022: 0.17x

 

Question: which of the following transactions and events would result in a deterioration in Debt to Equity in year 2021?

1) a share buy-back

2) receiving cash for unearned sales revenue

3) the purchase of machinery financed entirely by a reducing-balance bank loan

4) A and B only

5) A and C only

6) B and C only

7) All of the above

8) None of the above

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