Answered

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All other things the same, if a company uses long-term debt to purchase land to develop in the future, the company's return on total assets will decrease.
a) true
b) false

Sagot :

shristiparmar1221

The company purchases land to broaden in the future. The companies' return on total assets will decrease. That is a false announcement.

What is long-term debt?

Long-term period debt is debt that matures in a couple of years. Long-time period debt may be considered from two perspectives: monetary announcement reporting through the provider and monetary making an investment.

In monetary announcement reporting, agencies ought to report long-time period debt issuance and all of its related charge duties on their monetary statements.

On the other hand, making an investment in long-term period debt consists of placing cash into debt investments with maturities of a couple of years.

Long-term period debt is debt that matures in a couple of years. Entities select to pay off long-term debt with diverse considerations, more often than not, specializing in the time-frame for reimbursement and interest to be paid.

Investors spend money on long-time period debt for the blessings of hobby bills and keep in mind that the time to adulthood is a liquidity risk.

Overall, the lifetime obligations and valuations of long-term debt may be heavily influenced by marketplace fee changes and whether or not a long-term debt issuance has fixed or floating fee terms.

Organisation takes on debt to achieve instantaneous capital. For example, startup ventures require a broad budget to get off the ground.

This debt can take the shape of promissory notes and serve to pay for startup fees together with payroll, development, IP felony fees, equipment, and marketing.

Therefore, from the above statement, it's clear that alternative B, false, is the proper alternative.

Learn more about Long Term Debt, refer to:

https://brainly.com/question/14760504

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