You Have Prepared a Trend Series for Company XYZ for Three

question 16

Multiple Choice

You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$$\begin{array} { | l | c | c | c | } \hline & 2004 & 2005 & 2006 \\\hline \text { Sales } & 100 & 120 & 135 \\\hline \text { Net Income } & 100 & 118 & 128 \\\hline \text { Total Assets } & 100 & 119 & 130 \\\hline\end{array}$$
-Which of the following statements is incorrect?

• A) Net Income in 2006 increased by 28% compared to 2004.
• B) XYZ's net income to sales (return on sales) increased in 2006 compared to 2004.
• C) XYZ's net income to sales (return on sales) decreased in 2006 compared to 2004.
• D) Assets have increased over time.

---

Definitions:

Time-Out

A behavior-modification technique in which a child who misbehaves is temporarily removed from positive reinforcement.

Misbehaves

To act out or behave badly, contrary to established rules or expectations.

Punishment

A consequence administered to reduce the likelihood of a behavior occurring in the future, often involving an unpleasant or negative experience.

Shaping

Shaping is a psychological conditioning technique in which successive approximations toward a desired behavior are reinforced, gradually leading to the adoption of the behavior.