Instead of Increasing Its Long-Term Debt by Borrowing Money to Purchase

question 74

Multiple Choice

Instead of increasing its long-term debt by borrowing money to purchase new stereo equipment, Jay's Jams Inc.decides to lease the equipment.How does this affect its long-term debt ratio?

• A)It will decrease
• B)It will increase
• C)It will remain unchanged
• D)Unknown without the amount of the lease obligation

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Definitions:

Physiological Needs

Fundamental human necessities, such as food, water, shelter, and warmth, that must be satisfied for survival.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Esteem

The respect, admiration, or high regard that an individual is held in by others or themselves; often relates to one's reputation or standing within a community.

Belonging

An emotional need to be part of a group, feeling connected and accepted by others.