There Was an Upward Trend in the Ratio of the Book

question 46

Multiple Choice

There was an upward trend in the ratio of the book value of debt to the book value of debt and equity throughout the 1990s.Some of this was due to the repurchasing of stock.The market value ratio of debt to debt and equity exhibited no upward trend.This can be explained by:

• A)the change in the accounting rules of the period.
• B)the difference between tax accounting and accounting for financial accounting purposes.
• C)a large increase in the market value of equity that was greater than the increase in debt.
• D)All of the above.
• E)None of the above.

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Definitions:

Hemispheres

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Non-organic Failure

A condition typically referring to a failure to thrive or developmental delay in children not attributed to organic, biological causes.

Psychological Roots

Fundamental underlying causes or bases of behaviors, thoughts, or emotions from a psychological perspective.

Newborn

An infant who is within hours, days, or up to a few weeks old.