Which One of the Following Events Decreases the Debt/asset Ratio

question 8

Multiple Choice

Which one of the following events decreases the debt/asset ratio?

• A)Bonds are retired with a gain.
• B)Warranty expense is accrued.
• C)Some of the long-term debt matures next year.
• D)The board of directors declares a cash dividend to be paid next month.

---

Definitions:

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Executive Branch

The branch of government responsible for enforcing laws, typically headed by the President or Prime Minister, and including various departments and agencies.

Managerial Presidency

A concept where the President manages the executive branch of government, emphasising efficiency, effectiveness, and administrative control.

Scientific Expertise

The specialized knowledge and skills in a field of science, often used to inform decision-making or research.