Which of the Following Ratios Are Not Affected by Issuing

question 112

Multiple Choice

Which of the following ratios are not affected by issuing long-term bonds payable in exchange for cash?

• A)Debt-to-equity.
• B)Current.
• C)Cash Ratio.
• D)Quality of income.

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Definitions:

Cash Account

A financial record that tracks all cash receipts and disbursements within a business or organization.

Collections

The process of pursuing and receiving payments owed to a business from its customers or debtors.

Postage Stamps

Adhesive paper evidence for payment of postage, used to indicate that the postage fee for sending an item through the postal service has been paid.

Accountant

A professional who manages, audits, and analyzes financial records and transactions for individuals, businesses, and organizations.