Which of the following is not consistent with the changes in financial results reported by Momentum Clothing Distributors?
A)Momentum obtained additional debt and equity financing in 2013,which the company used to acquire additional assets.
B)Assets acquired in 2014 did not improve Momentum's ability to generate sales from each dollar invested in assets.
C)The total dollar amount of stockholders' equity increased from 2012 to 2013 and from 2013 to 2014.
D)Momentum's financing strategy has shifted toward greater relative reliance on investors for funding the company's growth.

Question

Quizplus · Accepted Answer

Momentum's financing strategy shifting towards greater reliance on investors would typically mean an increase in equity financing, which is consistent with an increase in stockholders' equity. Therefore, this choice is not inconsistent with the financial results.

Which of the Following Is Not Consistent with the Changes