If total current assets are $140,000 at the end of Year 1,increase by $50,000 by the end of Year 2,and increase by $50,000 in Year 3,the percentage increase over the preceding year is less in Year 3 than in Year 2.

Question

Quizplus · Accepted Answer

In Year 2, the increase from $140,000 to $190,000 represents a percentage increase of approximately 35.71% ($50,000/$140,000). In Year 3, the increase from $190,000 to $240,000 represents a percentage increase of approximately 26.32% ($50,000/$190,000). Therefore, the percentage increase in Year 3 is less than in Year 2.

If Total Current Assets Are $140,000 at the End of Year