Choosing to Account for a Transfer of Accounts Receivable as a Sale

question 113

Multiple Choice

Choosing to account for a transfer of accounts receivable as a sale rather than a borrowing would result in:

• A) a higher current ratio and lower debt-to-equity ratio.
• B) A higher debt-to-equity ratio.
• C) a lower current ratio.
• D) a higher current ratio higher debt-to-equity ratio.

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Definitions:

Face-To-Face

Direct interaction or conversation between people in the same physical location.

Active Voice

A sentence construction where the subject of the sentence performs the action expressed by the verb, making the writing clearer and more direct.

Password

A secret word or phrase used to verify the identity of a user before granting access to a computer system or digital account.

Completing

The act of finishing or bringing a task or activity to a conclusion.