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Identify the Effect(s) on the Debt/equity Ratio (A Through C)

Question 12

Multiple Choice

Identify the effect(s) on the debt/equity ratio (a through c) as a result of each transaction numbered below.You may use each letter more than once or not at all.
-Paid the interest portion of the payment on a capital lease


A) Increase in debt/equity ratio
B) Decrease in debt/equity ratio
C) Does not change debt/equity ratio

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