Information from the Financial Statements Are Provided Below

question 122

Multiple Choice

Information from the financial statements are provided below:

-Refer to Rio Imports. Which of the following statements is true concerning the company's debt management activities?

• A)The company has a smaller percentage of capital from stockholders at the end of 2015 than at the end of 2014.
• B)The company relied more on creditors for financing during 2015 than in 2014.
• C)The company improved its debt-to-equity ratio.
• D)Relative to 2014, the company is in a weaker position at the end of 2015 to finance capital expenditures from cash flow generated by operating activities.

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Definitions:

Hemi-

Refers to a prefix meaning half or partial, often used in medical and scientific terminology to describe something that affects one side or part.

Hypertrophy

An increase in the size of an organ or tissue through the enlargement of its cells.

-trophy

A suffix indicating growth, development, or nourishment of tissues or organs.

-cide

The suffix "-cide" is used to form nouns indicating the act of killing or the agent that kills the entity specified by the root (e.g., insecticide, homicide).