The Vertical Analysis Statement of Nobell Inc

question 75

Multiple Choice

The vertical analysis statement of Nobell Inc. is as below: The figure 47.0% shown for gross profit in 2016 signifies that:

• A) gross profit is equal to 47.0% of net income.
• B) gross profit is increased by 47.0% over the previous year.
• C) gross profit is 47.0% of net sales revenue.
• D) gross profit is 47.0% of cost of goods sold.

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Definitions:

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which states a relationship between categories.

Propositions

Statements or assertions that express judgments or opinions which can be either true or false.

Categorical Propositions

Statements in logic that assert or deny something about all or some of the members of a category, involving a subject and predicate and following specific forms.

Middle Term

The term that appears in both premises of a categorical syllogism but not in the conclusion, connecting the other two terms.