Use the Table for the Question(s) Below

question 35

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 stockholders' equity between 2007 and 2008?

• 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 2008 was negative.
• D) No conclusions can be drawn regarding stockholders' equity without additional information.

---

Definitions:

T Value

A value calculated in a t-test that assesses the difference between two means relative to the variation in the data.

Critical Value

The threshold or point on the test distribution that is compared with the test statistic to determine whether to reject the null hypothesis.

T Value

A statistic used in hypothesis testing to determine if there is a significant difference between two groups.

Test Statistic

A value calculated from sample data that is used in a hypothesis test to determine whether to reject the null hypothesis.