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If a Company Sold Shares for Cash, What Would Be

question 72

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


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.

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