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Correct if necessary please: After reading chapter 2 of the textbook: answer with: 1 ) increase, 2 ) decrease, 3 ) does not affect 1
Correct if necessary please: After reading chapter of the textbook: answer with: increase, decrease, does not affect Earnings are not distributed as dividends ie are retained increase equity An increase in depreciation expense decrease earnings and does not affect as cash flow And increasing the longterm debt such as selling bonds does not affect the quick ratio. A decrease debt does not affect on the days sales outstanding Selling inventory for a loss decrease the quick ratio Buying inventory with credit accounts payable does not affect total assets turnover The sale of a fixed asset for more than its book value increase taxes owed Collecting an account receivable does not affect return on assets And increase in taxes decrease the coverage ratio times interest earned An increase in interest expense decrease the firms operating profit margin Operating at a loss does not affect the debt ratio The return on equity decrease if inventory is sold for a loss Increased use of trade credit accounts payable to acquire your inventory does not affect days sales outstanding Increased depreciation expense decrease return on equity If a firm repurchase shares, total asset turnover does not affect If I firm sells plant for less than its book value, total asset turnover decrease and return on equity decrease They use of the modified accelerated cost recovery system of depreciation instead of straightline depreciation initially increase the return on equity If a firms current ratio increases the firm's liquidity position increase Collecting an accounts receivable does not affect the debt ratio Increasing the firm's cash does not affect fixed asset turnover
Correct if necessary please:
After reading chapter of the textbook: answer with: increase, decrease, does not affect
Earnings are not distributed as dividends ie are retained increase equity
An increase in depreciation expense decrease earnings and does not affect as cash flow
And increasing the longterm debt such as selling bonds does not affect the quick ratio.
A decrease debt does not affect on the days sales outstanding
Selling inventory for a loss decrease the quick ratio
Buying inventory with credit accounts payable does not affect total assets turnover
The sale of a fixed asset for more than its book value increase taxes owed
Collecting an account receivable does not affect return on assets
And increase in taxes decrease the coverage ratio times interest earned
An increase in interest expense decrease the firms operating profit margin
Operating at a loss does not affect the debt ratio
The return on equity decrease if inventory is sold for a loss
Increased use of trade credit accounts payable to acquire your inventory does not affect days sales outstanding
Increased depreciation expense decrease return on equity
If a firm repurchase shares, total asset turnover does not affect
If I firm sells plant for less than its book value, total asset turnover decrease and return on equity decrease
They use of the modified accelerated cost recovery system of depreciation instead of straightline depreciation initially increase the return on equity
If a firms current ratio increases the firm's liquidity position increase
Collecting an accounts receivable does not affect the debt ratio
Increasing the firm's cash does not affect fixed asset turnover
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