The Goodberry Corporation Data for the Current Year and Prior

question 120

Multiple Choice

The Goodberry Corporation data for the current year and prior year is as follows: What would a horizontal analysis report with respect to net sales revenue?

• A)There is a sales return of $0.11.
• B)There was an increase of 17.93% in net sales revenue.
• C)The cost of goods sold is 77.37% of net sales revenue.
• D)There is an accounts receivable turnover of 10.26 times.

---

Definitions:

Gross Method

An accounting practice where purchase discounts are ignored unless taken, with full invoice amounts recorded in the accounts payable.

Invoice Price

The price of goods as listed on the invoice, typically before any discounts, taxes, or additional charges.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.