The following is a summary of information presented on the financial statements of a company on December 31, 2017
Account 2017 2016
Current Assets $85,000 $75,000
Accounts Receivable 65,000 69,000
Merchandise Inventory 66,000 59,000
Current Liabilities 56,000 48,000
Long-term Liabilities 40,000 45,000
Common Stock 75,000 60,000
Retained Earnings 65,000 46,000
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
C .C)
Increase (Decrease)
2017 2016 Amount Percentage
Liabilities
Long-term liabilities $40,000 $45,000 $(5,000 ) (11.11 )
You might also like to view...
Process-focused layouts tend to sacrifice all of the following except?
a. Speed b. Production rate c. Machine utilization d. Flexibility
In keeping a brand strong, ___________________ have to be selective when adopting new features from competitors since their adoption means that the new features are endorsed by the leader.
a. All brands b. Runner Up Brands c. Category Leaders d. Mid-level brands
Smart Computer Services had a service contract with Johnson College to maintain all of the college computers used for instructional services. The college depended heavily on its computer system being maintained properly at all times. A liquidated damage clause in the contract provided that Smart Computers pay $500 to Johnson College for each day that Smart was late responding to a service call
On October 10, Smart was notified that Johnson College's computer system failed. Smart, however, did not respond to the college's request until October 15 . If Johnson College sues Smart Computer Services under the liquidated damages provision of the contract, Johnson College will a. win, unless the liquidated damage provision was determined to be a penalty. b. win because, regardless of the circumstances, the liquidated damages provision is valid. c. lose, because Smart's breach is only a minor. d. lose, because the liquidated damages clause in the Smart/Johnson College contract was against public policy.
Quin, a clerk at PC Computer Store, takes a computer from the store without PC's permission. Quin is liable for conversion
A. if he damages the computer. B. if he does not have a good reason for taking the computer. C. if he fails to prevent a theft of the computer from his possession. D. under any circumstances.