Selected Data from the Financial Statements Are Provided Below

question 118

Multiple Choice

Selected data from the financial statements are provided below:

-Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's income statement?

• A)Cost of goods sold is 42.1% of net sales for 2020.
• B)Gross profit is 57.9% of net sales for 2020.
• C)Cost of goods sold decreased 23.8% from 2019 to 2020.
• D)Inventory decreased $4,000 or 20% during 2019.

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Definitions:

Dependent-Samples T Test

A statistical test used to compare the means of two related groups or conditions to determine if there are statistically significant differences between them.

Average Score

The numerical average obtained by dividing the sum of all scores by the number of scores.

T Test

A statistical analysis method that evaluates if there's a significant difference between the average values of two distinct groups.

Null Hypothesis

A hypothesis that suggests there is no statistical significance in a set of given observations, serving as a default position until evidence suggests otherwise.