act quiz 22

Long-term debt increased from the prior​ year, but total interest expense decreased as a percentage of​ long-term debt.

Portions of existing​ long-term debt were refinanced at lower interest rates Short-term borrowings were refinanced on a​ long-term basis at lower interest rates.

The dollar amount of operating income is consistent with the prior year although the entity was more profitable on a net income basis.

Portions of existing​ long-term debt were refinanced at lower interest rates. The effective tax rate​ decreased, as compared to the prior year. Short-term borrowings were refinanced on a​ long-term basis at lower interest rates.

The allowance for obsolete inventory increased from the prior​ year, but the allowance as a percentage of inventory decreased from the prior year.

Shipments of inventory sold prior to year end were included in the​ client's inventory counts as of the balance sheet date.; The client purchased a large block of inventory on account close to year end.

The quick ratio decreased from the prior​ year, although the amount of cash and net accounts receivable is almost the same as the prior year.

The client purchased a large block of inventory on account close to year end.