What of the Following Would Be Shown on B

question 26

Multiple Choice

What of the following would be shown on B.Darin's horizontal analysis when calculating percentage changes from 2010 to 2011?

• A) An increase in sales revenue of 23%.
• B) An increase in gross profit of 41.5%.
• C) An increase in interest expense of 100%.
• D) An increase in net income of 57%.

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Definitions:

Consolidation

The process of combining multiple entities or accounts into a single entity or account for reporting and analysis purposes.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but with dividends paid after preferred shareholders.

Absorbed Firm

A company that has been merged into or acquired by another company, ceasing to exist as an independent entity.

Proxy Contest

A struggle for control of a company, wherein competing parties seek to secure the votes of shareholders through proxy solicitation.