Please refer to the partial balance sheet data provided below:

Which of the following would be a valid conclusion from the above data?
A) Shareholders' equity, as a percentage of total liabilities and shareholders' equity, declined over a two year period.
B) Shareholders' equity declined to 76.6% of net sales in 2017.
C) Shareholders' equity was up 76.6% over a two year period.
D) Shareholders' equity was equal to 76.6% of total liabilities in 2017.

Question

Please refer to the partial balance sheet data provided below:

Which of the following would be a valid conclusion from the above data?
A) Shareholders' equity, as a percentage of total liabilities and shareholders' equity, declined over a two year period. 
B) Shareholders' equity declined to 76.6% of net sales in 2017. 
C) Shareholders' equity was up 76.6% over a two year period. 
D) Shareholders' equity was equal to 76.6% of total liabilities in 2017.

Quizplus · Accepted Answer

The data shows that the percentage of shareholders' equity to total liabilities and shareholders' equity declined from 79.4% in 2016 to 75% in 2017, indicating a decline in shareholders' equity as a proportion of total liabilities and shareholders' equity. None of the other statements can be deduced from the data provided.

Please Refer to the Partial Balance Sheet Data Provided Below