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:

Stream Deposition

The process by which sediment carried by a stream is laid down or deposited in new locations, often resulting in the formation of deltas and alluvial fans.

Broad Plains

Expansive, flat areas of land with minimal elevation change, often found in the interior regions of continents.

Floodplain

The flat area adjacent to a river, prone to flooding during periods of high discharge, often fertile due to the deposition of sediments.

Delta

A landform created at the mouth of a river where it deposits sediment as it flows into another water body, such as an ocean or lake.