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:

Program Design

The process of planning and structuring the components and logic of a program or software to achieve specific goals.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products from the baby's blood.

Amniotic Sac

A fluid-filled sac within the uterus that surrounds and protects a developing fetus during pregnancy.

Zygote

The initial cell formed when a new organism is produced by the fusion of sperm and egg cells, representing the earliest developmental stage.