Refer to the Information Provided in Figure 1

question 218

Multiple Choice

Refer to the information provided in Figure 1.2 below to answer the question(s) that follow. Figure 1.2
-If the slope of a straight line is -3. and if Y (the variable on the vertical axis) decreases by 6, then X (the variable on the horizontal axis) will

• A) increase by 2.
• B) decrease by 2.
• C) increase by 18.
• D) decrease by 18.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Income Statements

A financial report summarizing a company's revenues, expenses, and profits over a specified period.

Trends

General directions in which something is developing or changing, often identified through the analysis of data over periods of time.

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.