Table 18 -4 the Following Is a Summary of Information Presented on the Presented

question 101

Multiple Choice

Table 18 -4
The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2017.

-Refer to Table 18-4.What would a horizontal analysis report with respect to net income before income tax expense and net income show?

• A) that both net income before income tax expense and net income are 45.45% of net sales revenue
• B) a $25,000 increase in both net income before income tax expense and net income
• C) a 45.45% increase in both net income before income tax expense and net income
• D) a 145% increase in both net income before income tax expense and net income

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Definitions:

Price Fixing

An agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

Criminally Liable

The legal responsibility for committing a crime, where an individual is subject to prosecution and potential punishment under criminal law.

Subjective Fault

A legal concept pertaining to the personal and individual blame or responsibility one has due to their own mental state or intentions.

Objective Fault

involves assigning blame or legal responsibility based on the failure to meet an objective standard of care or conduct, irrespective of the actor's intent.