Aleve Company Purchased Inventory on Credit

question 129

Multiple Choice

Aleve Company purchased inventory on credit.The effect of this transaction is that the

• A)earnings per share decreased.
• B)working capital increased.
• C)debt-to-equity ratio increased.
• D)earnings per share increased.

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Definitions:

Sustainable Financial Basis

A state of financial stability that can be maintained over the long term without depleting resources.

Fair Trade

A social movement and market-based approach that aims to help producers in developing countries obtain fair payment for their goods and labor.

Legal Entity

An organization or business that is given legal rights and responsibilities, including the ability to enter into contracts and own property.

Common Mission

A shared goal or purpose that unifies the members of a group, organization, or partnership.