Horizontal Analysis Showed a 25% Increase in Accounts Receivable in 2013

question 100

Multiple Choice

Horizontal analysis showed a 25% increase in accounts receivable in 2013 over 2012. 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:

Panic

A sudden overwhelming fear or anxiety that often causes wildly unthinking behavior or mass hysteria, usually in response to a particular event or situation.

Overcrowding Disasters

Catastrophic events resulting from too many people being confined in a space that cannot safely accommodate them, often leading to injury or death.

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility, often occurring within groups and leading to uninhibited behaviors.

Zimbardo

Refers to Philip Zimbardo, an American psychologist known for his Stanford prison experiment, exploring the psychological effects of perceived power.