The Following Is a Summary of Information Presented on the Financial

question 83

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31,2017. $$\begin{array} { | l | r | r | } \hline \text { Account } & { \mathbf { 2 0 1 7 } } &{ \mathbf { 2 0 1 6 } } \\\hline \text { Current Assets } & \$ 85,000 & \$ 75,000 \\\hline \text { Accounts Receivable } & 65,000 & 69,000 \\\hline \text { Merchandise Inventory } & 66,000 & 59,000 \\\hline \text { Current Liabilities } & 56,000 & 48,000 \\\hline \text { Long-term Liabilities } & 40,000 & 45,000 \\\hline \text { Common Stock } & 75,000 & 60,000 \\\hline \text { Retained Earnings } & 65,000 & 46,000 \\\hline\end{array}$$ With respect to long-term liabilities,a horizontal analysis reveals ________.

• A)long-term liabilities decreased by $15,000
• B)long-term liabilities decreased by 25.00%
• C)long-term liabilities decreased by 11.11%
• D)long-term liabilities decreased by $8,000