Which One of the Following Events Increases the Debt/equity Ratio

question 52

Multiple Choice

Which one of the following events increases the debt/equity ratio?

• A)Purchase of treasury stock
• B)Sale of treasury stock for more than its cost
• C)Sale of treasury stock for less than its cost
• D)Payment of cash dividends that were previously declared

Recognize the importance and application of rolling budgets in financial planning.

Understand the concept of activity-based budgeting and its advantages.

Grasp the components and preparation process of a manufacturing budget.

Identify the steps in preparing a production budget.

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Definitions:

Business Plan

A document detailing the strategy, goals, and operational plans for a business.

Feasibility Study

An assessment of how practical and viable an idea, project, or plan is, typically considering various factors such as economic, technical, legal, and scheduling aspects.

Financial Projections

Estimates of a company's future financial performance, including income statements, balance sheets, and cash flow statements, over a specific time period.

Feasibility Study

An analysis that assesses the practicality and potential success of a proposed venture or project, considering factors like market viability, financial stability, and technical resources.