The Following Is Summary of Information Presented on the Financial

question 89

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31, 2015. What would a horizontal analysis report show with respect to net income?

• A)both net income before income tax expense and net income are 45.45% of net sales revenue
• B)a $25,000 increase in net income
• C)a 45.45% increase in net income
• D)a 103% increase in net income

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Definitions:

Tympanic Thermometer

A device used to measure temperature by detecting the infrared heat from the ear drum.

Kussmaul's Respiration

A form of hyperventilation that is a compensatory mechanism seen in conditions such as diabetic ketoacidosis, characterized by deep and labored breathing.

Cheyne-Stokes Respiration

A pattern of breathing characterized by a gradual increase in breathing followed by a decrease and then a period of apnea, often associated with heart failure or brain injury.

Blood Glucose

The main sugar found in the blood and the body’s primary source of energy; its regulation is vital for metabolic function.