Selected Comparative Income Statement Amounts for a Company Are Shown

question 16

Multiple Choice

Selected comparative income statement amounts for a company are shown below.Using 2013 as the base year for a horizontal analysis, compute the account with the most significant change. $$\begin{array} { | l | r | r | } \hline & { 2013 } & { 2014 } \\\hline \text { Sales } & \$ 400,000 & \$ 520,000 \\\hline \text { General arid adrriristrative experises } & \$ 27,000 & \$ 29,700 \\\hline \text { Irterest expense } & \$ 1,000 & \$ 1,700 \\\hline \text { Miscellarreous experse } & \$ 100 & \$ 200 \\\hline\end{array}$$

• A)Sales.
• B)General and administrative expenses.
• C)Interest expense.
• D)Miscellaneous expense.
• E)Cannot be determined from the given data.

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Definitions:

Strategic Plan

A document that outlines an organization's strategy for achieving its goals over a specific timeframe, including objectives, action plans, and resource allocation.

Implementation

The process of putting a decision or plan into effect; execution.

Legal Control

The mechanisms, policies, and procedures put in place within an organization to comply with laws, regulations, and standards, ensuring lawful operation.

Ad Hoc Alliance

A temporary coalition formed for a specific task or objective, not intended as a permanent partnership.