The Following Is a Summary of Information Presented on the Financial

question 32

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 long-term liabilities?

• A)That long-term liabilities decreased by $30,000
• B)That long-term liabilities decreased by 40%
• C)That long-term liabilities decreased by 60%
• D)That long-term liabilities decreased by 67%

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Definitions:

Aspirational Reference Group

A group that an individual aspires to belong to or identifies with, influencing their behavior and choices.

Reference Groups

Social groups that individuals use as a standard for evaluating their own behavior, attitudes, and values.

Marketers

Professionals involved in identifying customer needs and promoting, selling, and distributing goods or services to meet those needs.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone, due to reduced accountability or motivation.