The following data were taken from Reynolds Company's balance sheet: ...

80.2K

Verified Solution

Question

Accounting

The following data were taken from Reynolds Company's balance sheet:

Dec. 31, 2016 Dec. 31, 2015
Total liabilities $240,000 $210,000
Total stockholders' equity
$160,000
$150,000

Which of the following best explains the change in creditors' risk from 2015 to 2016?

A. Not enough information is provided to answer this question.

B. Decreased risk.

C. Increased risk.

D. Risk did not change.

Dec. 31, 2016Dec. 31, 2015Total liabilities$240,000$210,000Total stockholders' equity$160,000$150,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students