Please Refer to the Following Data: Which of the Following

question 154

Multiple Choice

Please refer to the following data: Which of the following is a valid conclusion from the above data?

• A)The company shifted toward greater debt financing and less equity financing over the 2-year period.
• B)The company relied heavily on retained earnings to finance asset growth in 2014.
• C)Current asset and current liability data suggest a liquidity problem in 2014.
• D)The balance in Retained earnings declined over a 2-year period.

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Definitions:

Internal Control Systems

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Financial Results

The outcomes of a company's operations and activities in terms of profit or loss, revenue, and expense over a specific period.

Audit Committee

A subset of a company's board of directors that oversees financial reporting and disclosure.

Review And Reconciliation

The process of verifying the accuracy of financial records by comparing two sets of data or accounts to ensure they match.