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Saylor BUS105 Exam - Topic 7 Question 16 Discussion

This is the balance sheet for Swinney Services. Using trend analysis, what does this information tell us about the trends for current assets and current liabilities?
D) Current assets increased at a rate nearly 10x higher than current liabilities
A) Current assets increased at a rate nearly 2x higher than current liabilities
B) Current assets increased at a rate nearly 4x higher than current liabilities
C) Current assets increased at a rate nearly 6x higher than current liabilities

Saylor BUS105 Exam - Topic 7 Question 16 Discussion

Actual exam question for Saylor's BUS105 exam
Question #: 16
Topic #: 7
[All BUS105 Questions]

This is the balance sheet for Swinney Services. Using trend analysis, what does this information tell us about the trends for current assets and current liabilities?

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Suggested Answer: D

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Aleshia
2 hours ago
I think option B makes sense.
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Levi
5 days ago
I think it’s more like C) Current assets increased at a rate nearly 6x higher.
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Jesusa
10 days ago
B) Current assets increased at a rate nearly 4x higher than current liabilities sounds right!
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Carmelina
16 days ago
Wait, 10x higher? That seems too good to be true.
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Torie
2 months ago
Totally agree, that’s a solid growth!
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Wilbert
2 months ago
A) Current assets increased at a rate nearly 2x higher than current liabilities.
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Joaquin
3 months ago
This is tricky! I feel like I saw a question like this before, and it emphasized the importance of the ratio. I might go with option D, but I'm not confident.
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Bulah
3 months ago
I think I recall that current assets should ideally grow faster than liabilities, but I can't remember the exact ratios we discussed. Maybe option C?
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Mireya
3 months ago
I'm not entirely sure, but I feel like the trend analysis we did showed that current assets usually outpace current liabilities. Could it be option A?
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Terry
3 months ago
I remember we practiced a similar question where we had to compare growth rates of assets and liabilities. I think I might lean towards option B.
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