Effect of errors involving securities available for sale on financial statement ratios. Indicate using O/S (overstated), U/S (understated), or NO (no effect) the pretax effect of each of the following errors on (1) the rate of return on assets, and (2) the debt-equity ratio. Each of these ratios is between zero and 100 percent before management discovered the error.

a. A firm holding equity securities classified as short-term Securities Available for Sale neglected to write down the securities to market value at the end of the year.

b. A firm holding equity securities classified as long-term Securities Available for Sale neglected to write up the securities to market value at the end of the year.

c. A firm holding equity securities classified as long-term Securities Available for Sale recorded dividends received by debiting Cash and crediting the Investment account.

d. A firm holding equity securities accounted for using the equity method credited a check received for dividends from the investment to Dividend Revenue.

e. A firm holding equity securities accounted for using the equity method neglected to amortize excess purchase price related to undervalued depreciable assets.