When a company sells land for cash and makes a $25,000 gain,:
A. Its acid-test ratio decreases.
B. Its current ratio decreases.
C. Its debt to equity ratio decreases.
D. Cannot determine from the given information.
Answer:C
When a company sells land for cash and makes a $25,000 gain,:
A. Its acid-test ratio decreases. B. Its current ratio decreases. C. Its debt to equity ratio decreases. D. Cannot determine from the given information.