Which of the Following Is Most Consistent with an Increase

question 59

Multiple Choice

Which of the following is most consistent with an increase in the ratio of debt to equity?

• A)Payment of a required principal payment on long-term debt.
• B)Repurchase of a portion of the company's outstanding common stock.
• C)Higher than expected profits due to a decrease in cost of goods sold.
• D)Payment of most accounts receivable immediately prior to year-end using a portion of the company's cash.

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