The McCumber Corporation data for the current year: With respect to current assets, what would a horizontal analysis report?
A)Inventory turnover of 9.34 times
B)Current ratio of 0.92
C)Current assets as 40.79% of total assets
D)A 27.00% increase in current assets

Question

The McCumber Corporation data for the current year:  With respect to current assets, what would a horizontal analysis report?
A)Inventory turnover of 9.34 times 
B)Current ratio of 0.92 
C)Current assets as 40.79% of total assets 
D)A 27.00% increase in current assets

Quizplus · Accepted Answer

A horizontal analysis compares financial information for multiple periods, typically showing the change as either a dollar amount or percentage increase or decrease. Since the question asks for a report on current assets, option D indicating a 27.00% increase in current assets would be the correct answer.

The McCumber Corporation Data for the Current Year: with Respect