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More accounting questions. I am stuck on a few more, please help:?

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1.Which of the following events increases the debt/equity ratio?

a. purchase of treasury stock

b. sale of treasury stock for more than its cost

c. sale of treasury stock for less than its cost

d. payment of cash dividends which were previously declared

2. On the income statement, interest revenue is found in

a. operating revenues and expenses

b. other revenues and expenses

c. the disposal of a business segment section

d. the extraordinary gains or losses section

e. the cumulative effect section

3. The sale of equipment is an event considered to be

a. usual and frequent

b. unusual or infrequent

I vote for c: unusual and infrequent

d. an operating activity

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1 ANSWERS


  1. #1 - C

    #2 - B

    #3 - B

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