Accounts receivable increased from $40,000 to $50,000 during the fiscal year.
The horizontal analysis ratio for accounts receivable is

Question

Quizplus · Accepted Answer

The horizontal analysis ratio for accounts receivable is calculated as the change in value divided by the starting value. Here, the change is $10,000 ($50,000 - $40,000), and the starting value is $40,000. So, the ratio is $10,000 / $40,000 = 0.25 or 25%.

Accounts Receivable Increased from $40,000 to $50,000 During the Fiscal