Refer to the Summary Financial Information for Momentum Clothing Distributors

question 112

Multiple Choice

Refer to the summary financial information for Momentum Clothing Distributors. Which of the following statements is true?

• A) The company's level of financing risk was greater in 2011 than it was in 2010.
• B) In comparison to 2010, the company became less efficient in 2011 in generating revenues from its investment in assets.
• C) Despite the increase in sales in 2011, the company controlled its expenses just as well as it had in 2009.
• D) The company's level of financing risk was less in 2010 than it was in 2009.

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Definitions:

Other Accounts

A general term for accounts on the balance sheet that may include miscellaneous expenses, revenues, assets, or liabilities not classified under standard account categories.

Computerized Accounting Systems

Software applications designed to manage and automate accounting transactions and tasks.

Manual Systems

Traditional methods of processing data and managing information that do not rely on automated or computerized systems.

Special Journals

Accounting books used to categorize and record specific types of transactions such as sales, purchases, cash receipts, and cash disbursements, streamlining the accounting process.