The Following Is Summary of Information Presented on the Financial

question 93

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31, 2015. What would a horizontal analysis report show with respect to current liabilities?

• A)current liabilities are 38.46% of total capital
• B)a 50.00% increase in current liabilities
• C)a current ratio of .87
• D)a 33.33% increase in current liabilities

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Definitions:

Short-Run Aggregate-Supply Curve

A graphical representation that shows the relationship between the total production of goods and services and the price level for those goods and services in the short-term.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a reference point.

Output

The total quantity of goods and services produced by an economic system.

Short Run

A period in economics during which at least one input is fixed while others are variable, commonly used to analyze short-term decision-making.