Use the table for the question(s) below.
Balance Sheet
Net property, plant,

-If the above balance sheet is for a retail company, how has the company's leverage changed between 2007 and 2008?
A) The company has experienced a very significant decrease in its leverage.
B) The company has experienced a significant decrease in its leverage.
C) The company has experienced no significant change in its leverage.
D) The company has experienced a significant increase in its leverage.

Question

Use the table for the question(s) below.
Balance Sheet
   Net property, plant,
 
-If the above balance sheet is for a retail company, how has the company's leverage changed between 2007 and 2008?
A) The company has experienced a very significant decrease in its leverage. 
B) The company has experienced a significant decrease in its leverage. 
C) The company has experienced no significant change in its leverage. 
D) The company has experienced a significant increase in its leverage.

Quizplus · Accepted Answer

The only information given in the balance sheet is the net property, plant, and equipment. Since there are no other liabilities or financial information given, we cannot determine the company's leverage in either year. Therefore, the answer is (D) None of the above.

Use the Table for the Question(s) Below