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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