If a Company Sold Shares for Cash, What Would Be

question 72

Multiple Choice

If a company sold shares for cash, what would be the effect on the company's current ratio and debt-to-equity ratio?
$\begin{array}{ll}&\text { Current } & \text { Debt-to-Equity } \\&\text { Ratio } & \text { Ratio } \\A.&\text { increase } & \text { increase } \\B.&\text { increase } & \text { decrease } \\C.&\text { decrease } & \text { increase } \\D.&\text { decrease } & \text { decrease }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Unconditioned Response

An automatic, natural response to a stimulus that occurs without the need for learning.

Salivation

The secretion of saliva in the mouth, which is often a response to the presence or thought of food.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive response without the need for prior learning.

Loud Alarm

A sound-producing device designed to alert or warn individuals of a specific condition or danger.