The Nichols Corporation Data for the Current Year

question 92

Multiple Choice

The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to current liabilities?

• A)Current liabilities saw a 30% increase from the prior year to the current year.
• B)Current liabilities are 11.77% of total capital.
• C)The current ratio is 1.06.
• D)Current liabilities saw a 76.92% increase from the prior year to the current year.

---

Definitions:

Type I Error

An error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning a real effect or difference is missed in a study or test.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Acquitting

The legal act of freeing an individual from a charge of an offence by a verdict of not guilty.