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At the End of the Year,a Company Made an Adjusting

Question 115

Multiple Choice

At the end of the year,a company made an adjusting entry for prepaid insurance that had expired.Which of the following is true?


A) Net profit margin ratio will decrease and debt-to-assets ratio will increase.
B) Net profit margin ratio will increase and debt-to-assets ratio will not change.
C) Net profit margin ratio will decrease and debt-to-assets ratio will not change.
D) Net profit margin ratio will not change and debt-to-assets ratio will not change.

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