The Following Is a Summary of Information Presented on the Financial

question 85

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31, 2017. With respect to long-term liabilities, a horizontal analysis reveals ________.

• A) long-term liabilities decreased by $14,000
• B) long-term liabilities decreased by 24.56%
• C) long-term liabilities decreased by 24.53%
• D) long-term liabilities decreased by $7,000

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Definitions:

Quantity Demanded

The amount of a product that consumers are willing to buy at a specific price point, at a given time.

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Supply Falls

A situation where the quantity of goods or services available decreases in relation to demand.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.