Below Are Selected Data from the Financial Statements of Moriarty

question 79

Multiple Choice

Below are selected data from the financial statements of Moriarty Company. $\begin{array}{lrr}&2018&2017\\\text { Total liabilities } & \$ 1,205,000 & \$ 952,000 \\\text { Common stock }(\$ 30 \text { par) } & 250,000 & 225,000 \\\text { Paid-in capital in excess of par-Common stock } & 150,000 & 135,000 \\\text { Retained earnings } & 155,000 & 145,000\end{array}$ The debt-to-equity ratio for 2018 is

• A)increasing,which should be a major cause of concern for Moriarty Company.
• B)increasing,which should be a good sign in investors' eyes.
• C)decreasing,which should be a major cause of concern for Moriarty Company.
• D)decreasing,which should be a good sign in investors' eyes.

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior; the goodness or badness of human character.

Perceptual Constancy

The psychological feature that allows the perception of an object to remain relatively unchanged despite variations in the viewing conditions like distance or lighting.

Accommodation

In cognitive psychology, the process by which an individual revises existing cognitive schemas, perceptions, and understanding so that new information can be incorporated.

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance on a flat surface, using converging parallel lines.