Treetop Company Paid Off a $100,000 Two-Year Note Payable

question 122

Multiple Choice

Treetop Company paid off a $100,000 two-year note payable.The effect of this transaction is that the

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

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Definitions:

Retirement

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Investments

Assets or instruments acquired with the intention of generating income or appreciating in value over time.

Contract

A contract that is legally enforceable involving two or more parties.

Investments

Allocation of monetary resources with the intention of securing a return or profit.