Which of the Following Statements Is Correct

question 88

Multiple Choice

Which of the following statements is correct?

• A)Repayment of a bond on the first day of the fiscal year will have no effect on the shareholders' return on equity.
• B)Conversion of a 10% bond with no short term maturity, into common shares on the first day of the year will worsen the current ratio.
• C)The sale of 2,000 common shares for cash will have no effect on the current ratio.
• D)The sale of $5,000 of inventory on credit for $6,000 will have no effect on the current ratio.

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Definitions:

Palmar Reflex

An involuntary movement or grasp of the palms when they are stimulated, commonly seen in newborns.

Child Grasps

The action or capability of a child to physically hold objects or conceptually understand ideas.

Palm

The inner surface of the hand from the wrist to the base of the fingers, or a type of tree known for its long, flexible stems and leafy fronds.

Visual Acuity

The clarity or sharpness of vision, usually measured as the ability to discern letters or numbers at a specified distance according to a standardized chart or test.