A Vertical Analysis of Two Income Statements for Danielle's Design

question 96

Multiple Choice

A vertical analysis of two income statements for Danielle's Design Services is shown below: *Differences due to rounding Which of the following analyses reflect the data given?

• A)Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend.
• B)Wages expense and rent expense show an unfavorable trend, while supplies and miscellaneous expenses show a favorable trend.
• C)Wages expense and supplies expense show a favorable trend, while rent and miscellaneous expenses show an unfavorable trend.
• D)Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend.

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Definitions:

Atomic

Relates to atoms, the smallest constituent units of ordinary matter, or denotes something basic and indivisible in a particular context.

Truth-functional Compound

A complex statement in logic that is determined to be true or false based entirely on the truth values of its component statements.

Quantifier

A logical symbol or word used in mathematics and logic to specify the quantity of specimens in the domain of discourse.

Compound

A substance made from two or more elements chemically bonded together.