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

question 71

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 long-term liabilities show?

• A) that long-term liabilities decreased by $30,000
• B) that long-term liabilities decreased by 40%
• C) that long-term liabilities decreased by 60%
• D) that long-term liabilities decreased by 67%

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Definitions:

Discretionary Fiscal Policy

Changes in government spending and taxes to promote full employment, price stability, and economic growth.

Fiscal Policy

Governmental use of spending and taxation to influence the economy.

Government Spending

Expenditures by the government for its operations, programs, and debt payments, which can influence the economy's overall performance.

Taxation

The process or system through which governments levy charges on citizens and corporate entities to finance government spending and various public expenditures.