Question
S Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on
S Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of recording a capital lease on these ratios is a(an)
Return on Assets Debt/Equity Ratio
a. increase increase
b. decrease decrease
c. increase decrease d. decrease increase
A. Option b
B. Option a
C. Option c
D. Option d
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Justified The Story Of Americas Audit
Authors: Dr. Kelli Ward
1st Edition
195725503X, 978-1957255033
