If the Pro Forma Balance Sheet Shows That Total Assets

question 95

Multiple Choice

If the pro forma balance sheet shows that total assets must increase by $400,000 while retaining a debt-equity ratio of 0.75 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:

Self-Esteem

The perception that an individual has of their self-worth, shaped by their thoughts, emotions, and experiences.

Social Facilitation

The tendency for individuals to perform differently, often better, when in the presence of others than when alone, due to the perceived pressure of an audience or competition.

Possible Self

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Self-Exploration

The process of examining, questioning, and analyzing one's own thoughts, feelings, beliefs, and behaviors to gain insight.