Show the Effect of Each of the Transactions Below on Total

question 156

Essay

Show the effect of each of the transactions below on total liabilities and the debt-to-equity ratio by using one of the symbols in each box to complete the table.If the numerator and denominator of a ratio both increase or both decrease by the same amount,the effect of the event on the ratio is "O" or no effect.
$\begin{array}{lc}\text { Efiect } & \text { Symbol } \\\hline \text { Increase } & + \\\text { Decrease } & - \\\text { No effect } & N \\\text { Insufficient Data } & 0\end{array}$
$$\begin{array} { | l | l | l | } \hline & \begin{array} { c } \text { Effect on } \\\text { Total Liabilities }\end{array} & \begin{array} { c } \text { Effect on the Debt- } \\\text { to-Equity Ratio }\end{array} \\\hline \begin{array} { l } \text { Cash received from customers for accounts } \\\text { receivable balances due }\end{array} & & \\\hline \text { Declaration and payment of cash dividends } & & \\\hline \text { Purchase of long-term assets for cash } & & \\\hline\end{array}$$

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