Use the Table for the Question(s) Below

question 35

Multiple Choice

Use the table for the question(s) below.
Balance Sheet
Net property, plant,

-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in stockholders' equity between 2007 and 2008?

• A) The company is very profitable because it is obviously collecting receivables faster.
• B) The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity.
• C) The company's net income in 2008 was negative.
• D) No conclusions can be drawn regarding stockholders' equity without additional information.

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Definitions:

Controller

A senior position in a business responsible for overseeing the accounting operations and financial reporting.

Cash Position

The amount of liquid assets that are readily available to an individual, company, or organization.

Treasurer

A financial officer responsible for managing the treasury, including overseeing cash management, investments, and risk assessments of an organization.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell stocks.