You Want to Know Whether Selling and Administrative Expenses Were

question 102

Multiple Choice

You want to know whether selling and administrative expenses were reasonable for the past year,based on the level of sales.The best analysis for obtaining this information is

• A)trend analysis.
• B)vertical analysis.
• C)horizontal analysis.
• D)liquidity analysis.

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Definitions:

Risk

In law and business, risk refers to the exposure to potential loss or damage arising from various factors like legal liabilities or financial transactions.

Offeror

An offeror is a person or party who presents a conditional proposal to enter into an agreement with someone, known as the offeree, which becomes legally enforceable if accepted by the offeree.

Accommodation

Adjustments or modifications provided to employees or customers to enable participation or access, often relating to disability.

Nonconforming Goods

Products delivered under a contract that fail to meet the specifications or quality standards specified.