Use the Following Information to Do a Horizontal Analysis of Rae

question 110

Multiple Choice

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year: What is the dollar change in selling/general expenses?

• A)$(160)
• B)$87,000
• C)$20,000
• D)$(110,000)

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Definitions:

Purchase Invoices

Documents issued by a supplier to a buyer relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

Sales Invoices

Official documents issued by a seller to a buyer, detailing the products or services sold, quantities, and agreed prices for products or services the seller has provided the buyer.

Subsidiary Ledger

A detailed ledger that contains detailed financial information associated with specific accounts, which is summarized in the general ledger.

General Ledger

A comprehensive set of accounts that records all transactions of a company, categorized into assets, liabilities, equity, revenue, and expenses.