Which of the Following Is Used to See How a Company's

question 62

Multiple Choice

Which of the following is used to see how a company's operating expenses,as a percentage of net sales,have changed from one year to the next?

• A) vertical analysis
• B) horizontal analysis
• C) ratio analysis
• D) analysis of internal control system

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Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to receive payment at a later date.

Invoice Price

The amount charged by the seller to the buyer, detailing the cost of the product or service sold.

Merchandise

Merchandise refers to the goods that a business purchases to resell at a profit.

Journal Entries

The method used to record all transactions in an accounting system, ensuring that credits and debits are balanced.