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 2010 as the base year for a horizontal analysis,compute the account with the most significant change.
$\begin{array}{|l|r|r|}\hline&2010&2011\\\hline \text { Sales } & \$ 400,000 & \$ 520,000 \\\hline \text { General and Administrative Expenses } & \$ 27,000 & \$ 29,700 \\\hline \text { Interest Expense } & \$ 1,000 & \$ 1,700 \\\hline \text { Miscellaneous Expense } & \$ 100 & \$ 200\\\hline \end{array}$

• A)Sales
• B)General and Administrative Expenses
• C)Interest Expense
• D)Miscellaneous Expense
• E)Cannot be determined from the given data

---

Definitions:

In-kind Transfers

Non-cash benefits provided by the government to individuals, such as food stamps, housing assistance, and medical services, aimed at meeting basic needs.

Redistribution of Income

The transfer of income from certain individuals or groups to others through mechanisms like taxes, subsidies, and social welfare programs.

Equalizing Opportunities

Efforts or policies aimed at leveling the playing field so that individuals have equal chances to succeed, regardless of their background or circumstances.

Demographic Group

A segment of the population defined by certain characteristics such as age, race, gender, or income, used in statistical analysis and marketing.