One recognised approach to reducing the level of debt that has been adopted in the past was to:
A) Attempt to report the debt as equity, often in the form of preference shares.
B) Create reserves and draw on them later as a source of funding.
C) Treat as many liabilities as possible as provisions.
D) Record liabilities as an increase in cash and a decrease in revenues.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Attempting to report debt as equity, often in the form of preference shares, is a recognized approach to reducing the level of debt on a company's balance sheet. This can improve financial ratios and make the company appear less leveraged.

One Recognised Approach to Reducing the Level of Debt That