Discuss Saylor BUS105 Exam Topic 7 Question 16

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?

ACurrent assets increased at a rate nearly 2x higher than current liabilities

BCurrent assets increased at a rate nearly 4x higher than current liabilities

CCurrent assets increased at a rate nearly 6x higher than current liabilities

DCurrent assets increased at a rate nearly 10x higher than current liabilities

Suggested Answer: D

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21 comments · newest first

Rosio 1 month ago

I’m unsure, but A looks reasonable. Current liabilities are stable.

Refugia 1 month ago

I agree with Cordelia. C feels right based on the data.

Barney 1 month ago

Option D seems too high. I doubt it's that extreme.

Cordelia 2 months ago

I lean towards option C. The gap seems significant.

Jutta 2 months ago

I feel like option A makes sense. The increase is noticeable.

Jeffrey 2 months ago

I think it's option B. Current assets are growing fast!

Deja 2 months ago

I lean towards A. It's a solid increase.

Aja 2 months ago

I agree with Jenna. B shows a strong trend.

Jade 2 months ago

D is unrealistic. Current assets can't grow that fast.

Roselle 3 months ago

C seems too high, but maybe it's right.

Desire 3 months ago

I feel like A is too low.

Aleshia 3 months ago

I think option B makes sense.

Levi 3 months ago

I think it’s more like C) Current assets increased at a rate nearly 6x higher.

Jesusa 3 months ago

B) Current assets increased at a rate nearly 4x higher than current liabilities sounds right!

Carmelina 4 months ago

Wait, 10x higher? That seems too good to be true.

Torie 5 months ago

Totally agree, that’s a solid growth!

Wilbert 5 months ago

A) Current assets increased at a rate nearly 2x higher than current liabilities.

Joaquin 6 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.

Bulah 6 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?

Mireya 6 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?

Terry 6 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.

Saylor BUS105 Exam - Topic 7 Question 16 Discussion