The Data of Franklin Brothers Corp

question 56

Multiple Choice

The data of Franklin Brothers Corp.for two years are given below.

Based on the above information,which of the following statements is true?

• A)Cash ratio has increased from 0.02 in 2016 to 0.03 in 2017.
• B)Cash ratio has increased from 0.05 in 2016 to 0.08 in 2017.
• C)Cash ratio has increased from 0.403 in 2016 to 0.241 in 2017.
• D)Cash ratio has increased from 0.241 in 2016 to 0.403 in 2017.

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the major decisions and policies of a corporation.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, entitling the owner to a proportion of the company's assets and profits.

Preemptive Rights

Rights given to existing shareholders to purchase additional shares in a company during a new issue before the shares are offered to the public, allowing shareholders to maintain their proportional ownership.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that company.