Which of the Following Statements Is Correct

question 88

Multiple Choice

Which of the following statements is correct?

• A)Repayment of a bond on the first day of the fiscal year will have no effect on the shareholders' return on equity.
• B)Conversion of a 10% bond with no short term maturity, into common shares on the first day of the year will worsen the current ratio.
• C)The sale of 2,000 common shares for cash will have no effect on the current ratio.
• D)The sale of $5,000 of inventory on credit for $6,000 will have no effect on the current ratio.

---

Definitions:

Final Step

The last action or phase in a process or procedure, marking the completion of an activity.

Analyzing Outcomes

Involves examining the results or effects of actions, decisions, or policies to understand their effectiveness and to make informed decisions.

Research Findings

These are the outcomes or conclusions derived from systematic investigation into a subject or problem, often used to inform decisions or understand trends.

Report

A document that presents information in an organized format for a specific audience and purpose.