Which of the Following Misstatements Would Cause the Debt-To-Assets Ratio

question 42

Multiple Choice

Which of the following misstatements would cause the debt-to-assets ratio to be overstated?

• A) Capitalizing costs that should have been expensed.
• B) Failing to adjust for depreciation in the current period.
• C) Failing to accrue income taxes of the current period.
• D) Failing to accrue interest earned of the current period.

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