Which Financial Statement Would Indicate Whether the Company Relies More

question 100

Multiple Choice

Which financial statement would indicate whether the company relies more on debt or shareholders' equity to finance its assets?

• A)Statement of cash flows
• B)Statement of changes in equity
• C)Income statement
• D)Statement of financial position

---

Definitions:

Firms' Costs

The expenses incurred by businesses in the production of goods or services, including labor, materials, and overhead costs.

Quantity Supplied

The extent of a good or service that merchants are willing and have the capacity to offer at a pre-determined price.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service suppliers are willing to offer for sale at various prices.

Price of Sugar

The cost at which sugar is sold or bought in the market.