Answered: 22.Lower the debt equity ratio A.…

22.Lower the debt equity ratio A. Lower the protection to creditors B. Higher the protection to creditors C. It does not affect the creditors D. None of the above

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 7CYBK

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Question

22.Lower the debt equity ratio

Lower the protection to creditors

Higher the protection to creditors

It does not affect the creditors

None of the above

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