The Following Is a Summary of Information Presented on the Financial

question 149

Multiple Choice

The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2014. What would horizontal analysis report with respect to selling and general expenses?

• A)An 11.11% increase in selling and general expenses
• B)That selling and general expenses are 10.00% of net sales revenue
• C)A 10.00% decrease in selling and general expenses
• D)That selling and general expenses are 8.57% of net sales revenue

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Definitions:

Yields

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage.

T-Bill

Short for Treasury Bill, a short-term government securities issued with a maturity of less than one year, considered a safe investment.

Interest Rates

They are the charges lenders impose on borrowers for the use of financial assets, restated here to highlight their critical role in finance and borrowing.

Simple Interest

Interest is calculated merely on the principal or on what part of the principal is still owed.