A Company Paid Off a $100,000 2-Year Note Payable

question 33

Multiple Choice

A company paid off a $100,000 2-year note payable. The effect of this transaction is that the

• A)current ratio decreased.
• B)earnings per share increased.
• C)working capital increased.
• D)debt-to-equity ratio increased.

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Definitions:

Encryption

The process of converting information or data into a code to prevent unauthorized access.

Scrambles Information

The process of obfuscating or encrypting information to prevent unauthorized access to sensitive data.

Surge Protector

A device that shields electronic equipment from voltage spikes by blocking or shorting to ground any unwanted voltages above a safe threshold.

Electrical Spikes

Sudden increases in electrical voltage or current that last for a short period and can potentially harm electronic equipment.