Selected Comparative Income Statement Amounts for a Company Are Shown

question 11

Multiple Choice

Selected comparative income statement amounts for a company are shown below. Using 2009 as the base year for a horizontal analysis, compute the account with the most significant change.
$$\begin{array} { | l | r | r | } \hline & { 2009 } &{ 2010 } \\\hline \text { Sales } & \$ 400,000 & \$ 520,000 \\\hline \text { General and } & & \\\text { Administrative Expenses } & \$ 27,000 & \$ 29,700 \\\hline \text { Interest Expense } & \$ 1,000 & \$ 1,700 \\\hline \text { Miscellaneous Expense } & \$ 100 & \$ 200 \\\hline\end{array}$$

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

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Definitions:

Age-Related Differences

Variations in cognitive, psychological, and physical aspects of individuals that can be attributed primarily to the aging process, affecting behaviors and capabilities.

Cross-Sectional Design

A research method that studies different population groups at a single point in time for comparative purposes.

Cohort Design

A study design in which a group of individuals sharing a defining characteristic (e.g., birth year) is followed over time to study outcomes of interest.

Cross-Sectional Design

A research method that analyzes data from a population, or a representative subset, at a specific point in time.