After Each of the Following Transactions Is a Ratio

question 19

Essay

After each of the following transactions is a ratio. Mark an X in the appropriate space to indicate the effect of the transaction on the ratio.
$\begin{array}{|l|l|l|l|l|l|} \hline\text { Tran } &Ratio&Effect\\\text { sacti } \\\text { on } & & \\\hline& & \text { Increase } & \text { Decrease } & \text { None }& \\\hline \text { a. } & \text { Declaration of cash dividend. } & \text { Quick ratio } & & \\\hline \text { b. } & \text { Paid an account payable. } & \text { Current ratio } & & \\\hline \text { c. } & \text { Wrote off an account receivable. } & \text { Receivable turnover } & & \\\hline \text { d. } & \text { Collected an account receivable. } & \text { Return on assets } & & \\\hline \text { e. } & \text { Sold merchandise on account. } & \text { Current ratio } & & \\\hline \text { f. } & \text { Recorded utilities expense. } & \text { Profit margin } & & \\\hline \text { g. } & \text { Converted bonds into stock. } & \text { Debt to equity ratio } & & \\\hline \text { 1. } & \text { Sold merchandise on account. } & \text { Inventory turnover } & & \\\hline \text { i. } & \text { Paid previously declared dividend. } & \text { Dividends yield } & & \\\hline\end{array}$

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