Flaherty Corporation Used Data for 3 Years to Perform a Trend

question 80

Multiple Choice

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:

• A)100%.
• B)111%.
• C)117%.
• D)130%.
• E)86%.

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Definitions:

FIFO Method

"First In, First Out," an accounting method for valuing inventory where the first items placed in inventory are considered sold first.

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.

Month End Inventory

Describes the total value of all inventory held by a business at the end of a month, used for accounting and reporting purposes.

Pairs Of Skis

Two skiing boards used for the sport of skiing, sold or used together as a set.