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.

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Definitions:

Connective

In logic and philosophy, a term or operation that links propositions together in compound sentences, such as "and", "or", and "not".

Symbolic Form

The representation of objects or concepts through symbols or a system of symbols in a structured and conventional manner.

Components

The parts or elements that make up a whole system or object.

Connective

In formal logic, an operator that combines propositions to form a new proposition with a truth value derived from the original propositions.