A Company's Comparative Balance Sheets Show Total Assets for 2012

question 28

Multiple Choice

A company's comparative balance sheets show total assets for 2012 and 2011 as $990,000 and $900,000,respectively.What is the percentage change to be reported in the horizontal analysis?

• A)Increase of 10%
• B)Decrease of 10%
• C)Increase of 9%
• D)Decrease of 9%

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Definitions:

Financial Statements

are formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance over a specific period.

Rule 10b-5

A regulation under the Securities Exchange Act of 1934 that prohibits any act or omission resulting in fraud or deceit in connection with the sale or purchase of any security.

Securities Exchange Act

Also known as the Securities Exchange Act of 1934, it regulates the trading of securities in the U.S. and established the Securities and Exchange Commission (SEC).

Financial Statements

are formal records of the financial activities and condition of a business, person, or other entity.