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:

Transmission Oil Level

The volume of oil present in the transmission system, crucial for lubrication and smooth operation.

Filler Hole

An opening through which fluids, like oil or fuel, are added to a container, tank, or system.

Splash Lubrication

A simple method of lubricating engine parts by splashing oil onto them, commonly used in internal combustion engines.

Pressure Lube

A lubrication system that delivers oil under pressure to moving parts within machinery, ensuring reduced friction and wear for optimal performance.