Use the Table for the Question(s)below

question 104

Multiple Choice

Use the table for the question(s) below.
Statement of Financial Position

-If the above statement of financial position is for a retail company,what indications about this company would best be drawn from the changes in shareholders' equity between 2014 and 2015?

• 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 2015 was negative.
• D)The company's enterprise value declined.
• E)The company has experienced a significant rise in its market value.

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Definitions:

Conjugate Base

The species that remains after an acid has donated a proton during a chemical reaction.

Acid/Base Reaction

A chemical process involving the transfer of protons (H+) from an acid to a base.

Strong Bases

Substances that readily donate hydroxide ions or accept protons during a chemical reaction, characterized by their complete dissociation in water.

Electronegativity

An indicator of how strongly an atom pulls towards itself a pair of electrons that are being shared in a bond.