Horizontal Analysis Showed a 25% Increase in Accounts Receivable in 2016

question 8

Multiple Choice

Horizontal analysis showed a 25% increase in accounts receivable in 2016 over 2015.Vertical analysis showed accounts receivable declining from 7.5% to 6.8% over the same period.Given this information, what conclusion(s) may be reached?

• A)The dollar amount of accounts receivable increased.
• B)The dollar amount of accounts receivable decreased.
• C)It cannot be determined if the dollar amount of accounts receivable increased or decreased.
• D)This result is impossible.An error has been made in the calculations.