How Is the Percentage Change (For Horizontal Analysis)for Sales from 2014

question 79

Multiple Choice

How is the percentage change (for horizontal analysis) for sales from 2014 to 2015 computed?

• A)Year 2015 sales ÷ Year 2014 sales
• B)(Year 2015 sales - Year 2014 sales)÷ Year 2014 sales
• C)(Year 2015 sales - Year 2014 sales)÷ Year 2015 sales
• D)(Year 2015 sales ÷ Year 2014 sales)× 100

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Definitions:

Days' Cash

The average number of days a company takes to collect cash from its sales.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements, which may not align with the calendar year.

Liquidity Position

A financial metric used to determine how easily a company can pay off its short-term liabilities with its liquid assets.

Depreciation

The method in accounting of distributing a physical asset's cost throughout its service life.