The Following Is Summary of Information Presented on the Financial

question 118

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31,2017.

With respect to current liabilities,a horizontal analysis reveals ________.(Round your answer to two decimal places. )

• A)that current liabilities are 37.98% of total equity
• B)a 38.60% increase in current liabilities
• C)a current ratio of 0.87
• D)a 27.85% increase in current liabilities

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Definitions:

Expenses

The costs incurred during the operation of a business, which may include payments to suppliers, salaries, and utility bills.

Accounting Process

A systematic series of steps undertaken by an organization to record financial transactions, summarize these transactions, and prepare financial statements.

Information Users

Individuals or entities that use financial information to make decisions, including investors, creditors, and management.

Financial Statement

A written report that quantitatively describes the financial health of a company, including the balance sheet, income statement, and cash flow statement.