Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 15

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Which of the following statements is true?

• A)The current ratio increased from 2015 to 2016.
• B)The acid-test ratio decreased from 2015 to 2016.
• C)The amount of working capital decreased from 2015 to 2016.
• D)Assuming extreme conditions do not exist, the company appears to be in a worse position to pay its current debts at the end of 2016 compared to 2015.

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Definitions:

Movement

An act of changing physical location or position or of having this changed.

Cotton Gin

A machine invented by Eli Whitney in 1793 that quickly and efficiently removed seeds from cotton fibers, revolutionizing the cotton industry and significantly impacting the institution of slavery in the United States.

Slave Labor

Work done under force without proper remuneration, often under extremely harsh conditions, primarily referred to in the context of African slaves in the Americas during the colonial and antebellum periods.

Eli Whitney

Known for inventing the cotton gin, a pivotal invention in the history of agriculture and the economy of the United States.