Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A)Purchasing fixed assets through debt financing decreases financial leverage.
• B)Accruing an expense does not affect the net profit margin ratio.
• C)Return on equity increases when the financial leverage ratio decreases.
• D)Purchasing treasury stock results in a decrease in asset turnover.

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Definitions:

Daily Hassles

Everyday irritations that cause small disruptions, the effects of which can add up to a large impact on health.

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, often leading to health risks such as heart disease and stroke.

Cold Turkey

The abrupt cessation of a substance or behavior that one is addicted to, without the aid of reducing the habit gradually or using replacement medication.

E-cigarettes

Electronic devices that simulate tobacco smoking by producing an aerosol, often referred to as vapor, that users inhale.