Question
A company sells $350,000 in long-term bonds and buys $350,000 in inventory for cash. Which of the following statements is true? A) The debt-to-assets ratio
A company sells $350,000 in long-term bonds and buys $350,000 in inventory for cash. Which of the following statements is true?
A) The debt-to-assets ratio will stay the same and the times interest earned ratio will increase.
B) The quick ratio will increase and the times interest earned ratio will increase.
C) The debt-to-assets ratio will increase but the times interest earned ratio will decrease.
D) The quick ratio will increase and the times interest earned ratio will stay the same.
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Sound Investing, Chapter 18 - Significant Accounting Policies And Changes In Them
Authors: Kate Mooney
3rd Edition
0071719407, 9780071719407
