Which of the Following Would Be Most Likely to Reveal

question 32

Multiple Choice

Which of the following would be most likely to reveal that net income represented 7% of total net sales in 2017,but only 4% in 2016?

• A) common-size financial statements
• B) horizontal analysis
• C) trend analysis
• D) ratio analysis

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Definitions:

Diminishing Returns

A principle stating that as an additional unit of a factor of production is added, while other factors are held constant, the incremental increase in output will eventually decrease.

Nonreproducible

Refers to goods or assets that cannot be exactly replicated or duplicated, often due to uniqueness or specific characteristics.

Single-Tax Movement

The political efforts by followers of Henry George (1839–1897) to impose a single tax on the value of land and eliminate all other taxes.

Land Rent

The payment made for the use of land, typically reflecting the location's value and potential productivity.