Assume that the accounts receivable balances are $110,000, $112,000 and $116,000 for 2021, 2022, and 2023, respectively.The trend percentage for 2023 is
A)3.6%.
B)5.5%.
C)103.6%.
D)105.5%.

Question

Quizplus · Accepted Answer

To find the trend percentage for 2023, we need to calculate the percentage change from 2021 to 2023.
[(Ending balance - Beginning balance) / Beginning balance] * 100

[(116,000-110,000) / 110,000] * 100 = 5.45

Rounding to one decimal place gives us 5.5%, which corresponds to answer choice D.

Assume That the Accounts Receivable Balances Are $110,000, $112,000 and $116,000