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:

Deficient Fluid Volume

A medical condition characterized by a lower than normal amount of body fluids, often leading to dehydration.

Electrolyte Balance

The maintenance of the correct concentration and distribution of electrolytes within the body's fluids, essential for normal cell function.

Cognitive Orientation

The mental process involving perception, memory, judgment, and reasoning, as related to one's awareness and interpretation of the world.

Interstitial

Relating to spaces or interstices within a tissue or organ, often referred to in a medical or biological context.