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:

Illicit Trade

The trade of goods that are illegal or prohibited by law.

National Debt

Money owed by the government to individuals, businesses, and government agencies who purchase Treasury bills, Treasury notes, and Treasury bonds sold to cover expenditures.

Corporate Taxes

Taxes imposed on the income or profit of corporations and other business entities by the government.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value.