Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
-The largest single source of funds for the firm in 2010 is ________. (See Table 4.1)
A) an increase in net profits after taxes.
B) an increase in notes payable.
C) an increase in long-term debt.
D) an increase in inventory.

Question

Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010 
-The largest single source of funds for the firm in 2010 is ________. (See Table 4.1)
A) an increase in net profits after taxes. 
B) an increase in notes payable. 
C) an increase in long-term debt. 
D) an increase in inventory.

Quizplus · Accepted Answer

The total liabilities and equity increased from $16,000 in 2009 to $24,000 in 2010, with the largest increase coming from long-term debt ($4,000 increase from 2009 to 2010). Therefore, the largest single source of funds for the firm in 2010 is an increase in long-term debt.

Table 4.1 Ruff Sandpaper Co