The Statements of Comprehensive Income of LMA Ltd for the Years

question 43

Multiple Choice

The statements of comprehensive income of LMA Ltd for the years ending 31 December reveal the following information: Based on this information, which of the following statements is incorrect?

• A) Profit has increased in Year 3 by 20% over Year 2, 66.7% from Year 1 to Year 2, and 50% from Year 1 to Year 3.
• B) Profit in Year 3 has decreased from Year 2 and Year 1 for each sale made.
• C) The information shows that in Year 2 management was more efficient in creating profits from the sale of goods compared to the other years.
• D) Sales have increased in Year 3 by 33.4% over Year 2, 20% from Year 1 to Year 2, and 60% from Year 1 to Year 3.

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Definitions:

Continuing Bond

The ongoing psychological presence of a deceased loved one in the lives of the bereaved, reflecting an enduring connection.

Western Culture

A term referring to the societal norms, values, traditions, and arts developed historically in the Western world, particularly in Europe and the Americas.

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A person looked to by others as an example to be imitated.

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An intense, prolonged, and abnormal grieving process that impairs one’s ability to function in daily life.