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

question 42

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) The effects are unknown without the amount of the lease obligation.

---

Definitions:

Life Expectancy

Life expectancy is the average number of years that a group of individuals of the same age is expected to live, based on current mortality statistics.

Population Growth

The increase in the number of individuals in a population due to births outpacing deaths or through migration.

Demographic Data

Information collected about the characteristics of human populations, such as age, gender, income, and education.

Crude Birth Rate

The rate of live births per thousand inhabitants in a population for a specified year.