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A company's computes its debt/equity ratio by dividing its long-term debt by its shareholders' equity. Its debt/equity ratio will decrease when it: Collects accounts receivable

A company's computes its debt/equity ratio by dividing its long-term debt by its shareholders' equity. Its debt/equity ratio will decrease when it:

Collects accounts receivable

Issues stock for cash

None of the other alternatives are correct

Purchases land for cash

Borrows cash givinga short-term note payable

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