Which of the Following Statements Is Correct

question 69

Multiple Choice

Which of the following statements is correct?

• A)Repayment of a bond on the first day of the fiscal year will increase 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 improve the current ratio.
• C)The sale of 2,000 common shares for cash will worsen the shareholders' return on equity.
• D)The sale of $5,000 of inventory on credit for $6,000 will worsen the shareholders' return on equity.

---

Definitions:

Eddy Turns

Circular movements of water, caused by obstructions or the confluence of currents, leading to a small whirlpool or vortex.

Z-Drag Extractions

A mechanical advantage system used in technical rope rescue and water rescue to move heavy loads or trapped individuals.

Peel-Outs

Rapid acceleration in a vehicle causing the tires to spin and produce smoke, often leaving marks on the road surface.

Ferries

Boats or ships designed to carry passengers, vehicles, or cargo across a body of water, often as part of a regular, scheduled service.