The Following Is a Summary of Information Presented on the Financial

question 116

Multiple Choice

The following is a summary of information presented on the financial statements of a company on 31 December 2017.
$$\begin{array} { | l | l | l | } \hline \text { Account } & \mathbf { 2 0 1 7 } & \mathbf { 2 0 1 6 } \\\hline \text { Current assets } & \$ 82,000 & \$ 70,000 \\\hline \text { Accounts receivable } & 63,000 & 71,000 \\\hline \text { Inventory } & 62,000 & 55,000 \\\hline \text { Current liabilities } & 56,000 & 47,000 \\\hline \text { Non-current liabilities } & 42,000 & 55,000 \\\hline \text { Share capital } & 75,000 & 54,000 \\\hline \text { Retained earnings } & 66,000 & 44,000 \\\hline\end{array}$$
What would a horizontal analysis report show with respect to Non-current liabilities?

• A) Non-current liabilities decreased by $21,000
• B) Non-current liabilities decreased by 38.89%
• C) Non-current liabilities decreased by $9000
• D) Non-current liabilities decreased by 23.64%

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Definitions:

Department

A specialized functional area within an organization, focused on a specific area of activity or responsibility.

Selling Department

A division within a company responsible for managing sales activities and strategies to sell products or services.

Profit Center

A branch or division of a company that is responsible for generating its own revenue and profit.

Departmental Salary Expenses

Costs attributed to employee salaries within specific departments of an organization.