Accounts Receivable was $45,000 at the beginning of the year and $55,000 at the end of the year. The percentage change and direction of change for the year was a:
A)22% decrease.
B)22% increase.
C)18% increase.
D)18% decrease.

Question

Quizplus · Accepted Answer

To find the percentage change, we can use the formula: 
((ending value - beginning value) / beginning value) * 100%
Plugging in the given values, we get:
((55,000 - 45,000) / 45,000) * 100% = 22.22%
Since the ending value is greater than the beginning value, the direction of change is an increase. Therefore, the correct answer is B) 22% increase.

Accounts Receivable Was $45,000 at the Beginning of the Year