If the Pro Forma Balance Sheet Shows That Total Assets

question 66

Multiple Choice

If the pro forma balance sheet shows that total assets must increase by $400,000 while retaining a debt-equity ratio of.75 then:

• A)Debt must increase by $300,000
• B)Equity must increase by the full $400,000
• C)Debt must increase by $171,429
• D)Equity must increase by $100,000

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Definitions:

Mad Cow Disease

A fatal neurological disorder in cattle, caused by prions, which can be transmitted to humans through consumption of affected beef, leading to variant Creutzfeldt-Jakob disease.

Pragmatic Contributions

Practical additions or improvements made to a field or issue that are focused on practicality, effectiveness, and applicability in real-world scenarios.

Fear Appeals

A persuasion technique that involves raising alarm or concern about a potential danger to motivate specific behaviors.

Intentions

Plans or commitments to carry out an action in the future, often reflecting conscious decisions.