In a trend analysis of K Company, which of these changes appears to be the most significant in requiring further investigation?
A) An increase of 13% in revenues.
B) An increase of 11% in bad debts written off.
C) An increase of 7% in total assets.
D) An increase of 8% in accounts receivable.

Question

Quizplus · Accepted Answer

An increase of 11% in bad debts written off is a significant change that requires further investigation. It may indicate issues with credit management or non-payment by customers, which could have a negative impact on the company's financial health in the long run. The other changes, such as an increase in revenues, total assets, or accounts receivable, are generally positive and expected in a growing company.

In a Trend Analysis of K Company, Which of These