Answer:
a. Current ratio
Explanation:
Current Ratio is the least likely to be affected
The Current Ratio is given as
Current Ratio = [ Current assets ] ÷ [ Current liabilities ]
Now,
Building a new plant is a fixed asset for the company.
Thus, It will add to the Fixed assets
Since,
The Formula for current ratio is independent of the fixed assets
Therefore,
It will be least affected.
While,
Debt to equity ratio = [ Debt ] ÷ [ Equity ]
Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]
Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]
in all the above relations, fixed asset will change the value of the total assets.
Hence,
They all will be affected
I think it’s higher the risk and the lower present value
Answer:
$300,000
Explanation:
Although the property dividend was distributed on January 15, year 6. the <u>amount that will be used is the value of the shares as at the declaration date and not the distribution date </u>
Hence, since the aggregate market price of the tell shares held by bain was $300,000. on the declaration date, the entry to record the declaration of the dividend should include a debit to retained earnings (or property dividends declared) of $300,000
Answer:
True
Explanation:
The property rights are the rights that are given the authority to use or sell the property resources which fully depend upon the ownership criteria.
It should be legally owned by any person whether such a person is an individual or its a company or government.
The example of the property rights would be intangible or tangible i.e building, patents, land, copyrights, and other intellectual properties.
