At the End of Last Year,Ace Company Had Total Assets

question 60

Multiple Choice

At the end of last year,Ace Company had total assets in the amount of $6,000,000 and total liabilities in the amount of $4,000,000.The company issued shares to new stockholders at the beginning of the current year for $1,000,000.As a direct result of this transaction,the:

• A) debt-to-assets ratio will increase.
• B) asset turnover ratio will decrease.
• C) net profit margin ratio will increase.
• D) net profit margin ratio will decrease.

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Definitions:

Majority Voting

A process of making decisions where the choice that gets over fifty percent of the votes prevails.

Pizza Order

Consists of a request by a customer to purchase a specific type of pizza with chosen toppings, size, and quantity from a pizzeria or restaurant.

Paradox of Voting

The situation in which individual rationality (deciding not to vote because a single vote rarely decides an election) leads to a collective problem (poor electoral outcomes if many decide not to vote).

Median-Voter Model

The median-voter model is a political theory that suggests outcomes of majority-rule elections are determined by the preferences of the median voter.