Use the Table for the Question(s) Below

question 5

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 quick ratio between 2007 and 2008?

• A) The company has eliminated the risk that it will experience a cash shortfall in the near future.
• B) The company has reduced the risk that it will experience a cash shortfall in the near future.
• C) The risk that the company will experience a cash shortfall in the near future is unchanged.
• D) The company has increased the risk that it will experience a cash shortfall in the near future.

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Definitions:

Total Revenue

Total revenue is the total amount of money earned by a firm from the sale of its goods and services before any costs are subtracted.

Demand Schedule

A table that lists the quantities of a good a consumer is willing to purchase at different price levels during a specific time period.

Total Revenues

The total amount of money generated from sales of products or services before any expenses are subtracted.

Price

The amount of money or its equivalent required to purchase a good, service, or asset, acting as a reflection of its value.