Last year, which is used as the base year, a ﬁrm had cash of $60, accounts receivable of $100, inventory of $200, and ﬁxed assets of $500. This year the ﬁrm has cash of $50, accounts
Receivable of $150, inventory of $250, and ﬁxed assets of $550. What is the common-base year
Value of accounts receivable?
A) .12
B) .15
C) .67
D) 1.16
E) 1.50

Question

Quizplus · Accepted Answer

The common-base year value is calculated by dividing this year's accounts receivable by last year's accounts receivable: $150 / $100 = 1.50.

Last Year, Which Is Used as the Base Year, a ﬁRm