Paint Company Following Are Selected Data from Paint Company's Financial

question 103

Multiple Choice

Paint Company Following are selected data from Paint Company's financial statements.
Refer to the Paint Company data.
The company's debt-to-equity ratio was 0.83 to 1 in 2012 and 0.89 to 1 in 2011.Which of the following statements is true concerning Paint?

• A)The company has a smaller percentage of capital from owners at the end of 2012 than at the end of 2011.
• B)The company relied more on creditors for financing during 2012 than in 2011.
• C)The company is improving its debt-to-equity ratio.
• D)The company appears to be in a weaker position at the end of 2012 to finance capital expenditures from cash flow generated by operating activities.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Employment Relationships

encompasses the connection and contractual agreement between an employer and an employee, including rights, responsibilities, and expectations.

Workplace Values

The beliefs and norms that guide behavior and decisions within an organizational setting, shaping the culture and climate of the workplace.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.