Filmore Inc $$\begin{array} { l l l } & 2016 & 2017 \\\hline \text { Curtent liabilities } & \$ 250,000 & \$ 400,000\end{array}$$

question 50

Multiple Choice

Filmore Inc.has the following information available for 2016 and 2017:
$$\begin{array} { l l l } & 2016 & 2017 \\\hline \text { Curtent liabilities } & \$ 250,000 & \$ 400,000\end{array}$$
If you were performing a trend analysis on this information,you would say that current liabilities have:

• A)increased by 37.5%.
• B)increased by 60%.
• C)increased by 62.5%.
• D)increased by 60%
• E)None of the answer choices is correct.

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Definitions:

Straight-Line Method

An approach to depreciation that divides the cost of an asset evenly over its expected lifespan, resulting in the same depreciation expense annually.

Annual Interest Expense

The total cost incurred by a borrower in a year for all debts, represented as the interest payments made on any borrowed funds.

Bond Discount

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Premium

The amount paid for an insurance policy, or the amount by which a bond or stock sells above its par or face value.