Which of the following ratios are not affected by issuing long-term bonds payable in exchange for cash?
A)Debt-to-equity.
B)Current.
C)Cash Ratio.
D)Earnings quality.

Question

Quizplus · Accepted Answer

Issuing long-term bonds affects the debt-to-equity, current, and cash ratios by increasing liabilities and cash. However, it does not directly affect earnings quality, which is related to the sustainability and reliability of earnings.

Which of the Following Ratios Are Not Affected by Issuing