For each transaction numbered 1 through 5 below, identify which effect(s) (a through d) that each transaction would have on the current and debt/equity ratios. You may use each letter more than once or not at all. Some transactions have two answers.
____ 1. Equipment is purchased by incurring a long-term note payable and paying the balance in cash
____ 2. Paid for transportation of equipment shipped from a supplier
____ 3. Depreciated the equipment during the first year of use
____ 4. Paid for lubrication and periodic maintenance of the equipment
____ 5. Sold the equipment, receiving more money than its book value

Question

For each transaction numbered 1 through 5 below, identify which effect(s) (a through d) that each transaction would have on the current and debt/equity ratios. You may use each letter more than once or not at all. Some transactions have two answers.
  ____ 1. Equipment is purchased by incurring a long-term note payable and paying the balance in cash
____ 2. Paid for transportation of equipment shipped from a supplier
____ 3. Depreciated the equipment during the first year of use
____ 4. Paid for lubrication and periodic maintenance of the equipment
____ 5. Sold the equipment, receiving more money than its book value

Quizplus · Accepted Answer

The Answer of For each transaction numbered 1 through 5 below, identify which effect(s) (a through d) that each transaction would have on the current and debt/equity ratios. You may use each letter more than once or not at all. Some transactions have two answers.
  ____ 1. Equipment is purchased by incurring a long-term note payable and paying the balance in cash
____ 2. Paid for transportation of equipment shipped from a supplier
____ 3. Depreciated the equipment during the first year of use
____ 4. Paid for lubrication and periodic maintenance of the equipment
____ 5. Sold the equipment, receiving more money than its book value

For Each Transaction Numbered 1 Through 5 Below, Identify Which