Multiple Choice
Which of the following statements is correct?
A) Repayment of a bond on the first day of the fiscal year will have no effect on the shareholders' return on equity.
B) Conversion of a 10% bond with no short term maturity, into common shares on the first day of the year will worsen the current ratio.
C) The sale of 2,000 common shares for cash will have no effect on the current ratio.
D) The sale of $5,000 of inventory on credit for $6,000 will have no effect on the current ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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