Answered: The comparative accounts payable and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The comparative accounts payable and long-term debt balances for a company follow.

	Current Year	Previous Year
Accounts payable	$47,481	$39,900
Long-term debt	44,650	47,000

Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers.

	Amount of Change	Increase/Decrease	Percentage
Accounts payable	$fill in the blank 1	IncreaseDecrease	fill in the blank 3 %
Long-term debt	$fill in the blank 4	IncreaseDecrease	fill in the blank 6 %

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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