Horizontal Analysis Showed a 25% Increase in Accounts Receivable in 2018

Multiple Choice

Horizontal analysis showed a 25% increase in accounts receivable in 2018 over 2017. 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?

A) The dollar amount of accounts receivable increased.
B) The dollar amount of accounts receivable decreased.
C) It cannot be determined if the dollar amount of accounts receivable increased or decreased.
D) This result is impossible. An error has been made in the calculations.