The McCumber Corporation Data for the Current Year

question 176

Multiple Choice

The McCumber Corporation data for the current year:

With respect to net sales revenue,what would a horizontal analysis report?

• A)There was an increase of 20.00% in net sales revenue.
• B)There is a sales return of $10.40.
• C)The cost of goods sold is 77.37% of net sales revenue.
• D)There is an accounts receivable turnover of 11.17 times.

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Definitions:

Accounts Receivable

Accounts receivable represent the money owed to a company by its customers for goods or services delivered but not yet paid for.

Merchandise

Goods that are purchased for resale at a profit; the main product that a retailer sells.

Sales on Account

Transactions where goods are sold and payment is deferred to a future date; this is typically tracked through accounts receivable.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.