Which of the following would help a company improve its debt-to-assets ratio?
A)Borrowing money just before the end of the accounting period.
B)Shifting resources from long-term assets to short-term assets.
C)Paying off obligations.
D)All of the answers are acceptable.

Question

Quizplus · Accepted Answer

Paying off obligations would decrease the amount of debt the company has in relation to its assets, therefore improving its debt-to-assets ratio. Borrowing money and shifting resources from long-term assets to short-term assets may provide short-term benefits, but could ultimately harm the company's financial standing and debt-to-assets ratio in the long run.

Which of the Following Would Help a Company Improve Its