Which of the Following Is Not Consistent with the Changes

question 71

Multiple Choice

Which of the following is not consistent with the changes in financial results reported by Momentum Clothing Distributors?

• A)Momentum obtained additional debt and equity financing in 2013,which the company used to acquire additional assets.
• B)Assets acquired in 2014 did not improve Momentum's ability to generate sales from each dollar invested in assets.
• C)The total dollar amount of stockholders' equity increased from 2012 to 2013 and from 2013 to 2014.
• D)Momentum's financing strategy has shifted toward greater relative reliance on investors for funding the company's growth.

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Tennessee Court Of Appeals

An intermediate appellate court in Tennessee that reviews decisions from lower courts.

Lease

A contractual agreement where one party, the lessor, grants the other party, the lessee, the right to use an asset for a specified period in exchange for payment.

Illusory Promise

A statement that appears to be a promise but, upon closer examination, offers no commitment or assurance to act.

Option Contract

An agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror’s agreement to hold the offer open for the specified period of time.