A Company Issues $200,000 in Long-Term Bonds and Pays Off

question 70

Multiple Choice

A company issues $200,000 in long-term bonds and pays off $200,000 in accounts payable. Which of the following statements is true?

• A) Both the quick ratio and times interest earned ratio will rise.
• B) The quick ratio will fall but the times interest earned ratio will rise.
• C) The quick ratio will rise but the times interest earned ratio will fall.
• D) Both the quick ratio and times interest earned ratio will fall.

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Definitions:

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being selected, minimizing bias in the sample collected.

Exit Polling

A survey of voters taken immediately after they have exited the polling stations, primarily used to predict election outcomes before the official count.

Predict Election

The process of using data analysis and statistical models to forecast the outcome of an election.

Purposive Sampling

A sampling technique where the researcher selects participants based on their judgment and the purpose of the study, targeting a specific group of interest.