a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.) O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8. O B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.) O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8. O B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.)
O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8.
B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
D. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
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