Question
Horizontal analysis showed a 25% increase in accounts receivable in 2022 over 2021. Vertical analysis showed accounts receivable declining from 7.5% to 6.8% over the
Horizontal analysis showed a 25% increase in accounts receivable in 2022 over 2021. Vertical analysis showed accounts receivable declining from 7.5% to 6.8% over the same period. Given this information, what conclusion(s) may be reached? Select one: Oa. This result is impossible. An error has been made in the calculations. O b. The dollar amount of accounts receivable decreased. O c. The information is an anomaly that raises a red flag with respect to financial statement fraud. Most likely the auditors will detect this risk and response accordingly. O d. The dollar amount of accounts receivable increased. Oe. Without additional information on the notes to the financial statements, it cannot be determined if the dollar amount of accounts receivable increased or decreased
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