Sunshine Farm Supply Following Are Selected Data from the Financial

question 217

Multiple Choice

Sunshine Farm Supply Following are selected data from the financial statements of Sunshine Farm Supply:
Refer to the data for Sunshine Farm Supply.
Which of the following would result from a horizontal analysis of its income statement?

• A)Cost of goods sold is 42.1% of net sales for 2012.
• B)Gross profit is 42.1% of net sales for 2012.
• C)Cost of goods sold decreased $50,000 or 23.8% during 2012.
• D)Accounts receivable total 13.3% of total assets for 2012.

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Definitions:

First Instinct Fallacy

The mistaken belief that an individual's first choice or gut reaction is always the correct or best one.

Statistical Regression

A statistical technique that determines the relationship between a dependent variable and one or more independent variables to predict the outcome of the dependent variable.

Errors And Biases

Systematic deviations from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Cognitive Errors

Cognitive errors refer to systematic flaws or biases in human reasoning and perception that can lead to incorrect judgments, decisions, or interpretations.