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:

Disposable Income

The financial scope households possess for spending and saving activities, following income taxes.

APC

The Average Propensity to Consume denotes the percentage of income allocated towards consumption.

Disposable Income

Net disposable financial resources for households focusing on savings and spending post income tax adjustments.

Disposable Income

The budgetary provision for households for saving and spending after income taxes have been processed.