"Financial Report": treasury stock

C is correct. When a company repurchases its own shares and does not cancel them, they are referred to as treasury shares (or treasury stock). A is incorrect. Preferred shares (or preferred stock), a component of equity, are a type of equity interest, that ranks above common shares with respect to payment of dividends and the distribution of net assets upon liquidation. B is incorrect. Marketable securities are financial assets and include investments in debt or equity securities that are traded in a public market.

A is correct. First identify the current assets: cash and equivalents, inventory, and accounts receivable. Then calculate the current ratio (Current assets/Current liabilities) as follows:

An increase in the current ratio (from 0.96 to 1.11) most likely indicates a higher level of liquidity and, therefore, an increased ability to meet short-term obligations.

B is incorrect. It excludes the inventory (confusing current ratio with quick ratio) and appears to have decreased: (1950 + 2,540)/4920 = 0.91.

C is incorrect. It incorrectly double counts the current portion of the long-term debt, which is already included in total current liabilities, so it appears to be unchanged: (5,440/ (4,920 + 720) = 0.964.