Use the Table for the Question(s)below

question 94

Multiple Choice

Use the table for the question(s) below.
-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in shareholders' equity between 2017 and 2018?

• A)The company is very profitable because it is obviously collecting receivables faster.
• B)The company's net income in 2018 was negative.
• C)The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity.
• D)No conclusions can be drawn regarding shareholders' equity without additional information.

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Definitions:

Canada Health Act

A piece of Canadian federal legislation adopted in 1984 that sets criteria and conditions for health care insurance plans that provinces and territories must meet to receive federal funds.

Universality

A principle that something applies to everyone in a particular group or context, without exception.

Private Administration

The management and organizational activities conducted by private sector entities, as opposed to public or governmental administration.

Canadian Medical Association

A national, voluntary association of physicians and medical students in Canada that advocates on national health and medical matters.