The Following Is a Summary of Information Presented on the Financial

question 23

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31,2017.

With respect to net sales revenue,a horizontal analysis reveals ________.

• A)a 19.80% increase in net sales revenue
• B)a 238.41% decrease in net sales revenue
• C)a decrease of $52,000 in net sales revenue
• D)a $52,000 increase in net sales revenue

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Definitions:

Preexisting Duty

A promise to do something that one is already obligated to do. It is not considered valid consideration.

Unforeseen Circumstances

Events or situations that could not have been predicted and often cause a change in plans or necessitate a response.

Illusory Promise

An illusory promise is a statement that resembles a promise but does not actually commit the speaker to any action or obligation, making it unenforceable as a contract.

Preexisting Duty

An obligation that a party is already legally required to perform, which cannot serve as valid consideration for a new contract.