Michaud Ltd

question 34

Multiple Choice

Michaud Ltd. has the following information available for 2011 and 2012: Which of the following statements is true regarding horizontal analysis with respect to Michaud?

• A) It would show total assets has increased by 30 percent.
• B) It would show total assets has increased by 53.8 percent.
• C) There is not enough information available to perform horizontal analysis.
• D) Horizontal analysis can not be performed using total assets.

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Definitions:

Quantity Of Dollars

The quantity of dollars refers to the total amount of U.S. currency circulating within the economy, including physical cash and bank deposits.

Loanable Funds Demanded

The total amount of loans that borrowers are willing to take at a given interest rate, over a certain period.

Net Capital Outflow

Net capital outflow is the difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country's assets over a period of time.

Domestic Investment

The capital allocation by firms and individuals within their own country to create more goods, services, or assets.