All Other Things Held Constant, Which of the Following Ratios

question 49

Multiple Choice

All other things held constant, which of the following ratios would not be improved if a company structures a leasing transaction as an operating lease rather than a capital lease?

• A) Debt to equity ratio
• B) Return on investment
• C) Price-earnings ratio
• D) Quick ratio

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Definitions:

Formosan Termites

Invasive and highly destructive species of termites known for their aggressive wood-eating habits, posing major threats to buildings.

Asian Carp

Invasive fish species native to Asia, known for rapidly populating and disrupting ecosystems in US rivers and lakes.

Kudzu Vine

A fast-growing climbing plant, introduced from Asia to North America, often considered invasive due to its smothering growth.

Canadian Rockies

A major mountain range in western Canada known for its breathtaking scenery and outdoor recreational opportunities.