If a company shifts current costs to a future period (which is a financial shenanigan), what will be the effect on financial ratios (assuming all else is constant)?

A) Profit margins in the current period will be higher B) Profit margins in the next period will be higher C) Total assets on the common size balance sheet will be higher D) Cash balances will be lower in the current period E) Shareholders Equity will be lower for the current period

Answer rating: 100% (QA)

E Shareholders Equity will be lower for the current period Shifting current costs t... View the full answer