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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Definitions:

Free Trade

The exchange of goods and services between countries with minimal regulatory restrictions like tariffs.

Adam Smith

was an 18th-century Scottish economist and philosopher, best known for his influential works on the principles of free market economics.

Economic Endeavors

Activities or efforts directed towards the production, distribution, and consumption of goods and services in an economy.

1970s

The decade from 1970 to 1979, marked by significant political, social, and economic changes worldwide, including the end of the Vietnam War and the energy crisis.