What would be the direction of the effect of the following transactions on the following ratios (+
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What would be the direction of the effect of the following transactions on the following ratios (+ for increase, − for decrease, and NE for no effect)? Consider each item independently.
a. Repaid principal of $2,000 on a long-term note payable with the bank.
b. Recorded rent expense of $100 paid for in cash.
Transcribed Image Text:
a. b. Transaction Net Profit Margin Return on Assets Current Ratio
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a Notes payable longterm L 2000 Cash A 20...View the full answer
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Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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