Accounting: Effects of Transactions on Ratios a. Sold merchandise on account – Curr

Accounting: Effects of Transactions on Ratios a. Sold merchandise on account – Curr

Accounting: Effects of Transactions on Ratios a. Sold merchandise on account – Current ratio effect would be Increase, Decrease, or None b. Sold merchandise on
account – Inventory turnover would be Increase, Decrease, or None c. Collected on accounts receivable – Quick ratio would be Increase, Decrease, or None d. Wrote
off an uncollectible acct = Receivable turnover would be Increase, Decrease, or None e. Paid on accounts payable – current ratio would be increase, decrease, or
none f. Declared cash dividend – return on equity would be increase, decrease or none g. Incurred advertising expense – profit margin would be increase, decrease
or none h. issued stock dividend = debt to equity ration would be increase, decrease or none i. Issued bonds payable/ asset turnover would be increase, decrease or
none j. accrued interest expense/current ratio would be increase, decrease or none k. paid previously declared cash dividend would be increase, decrease or none l.
purchased treasury stock/ return on assets would be increase, decrease or none m. recorded depreciation expense/ cash flow yield would be increase, decrease or
none

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