The percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred to as horizontal analysis
Indicate whether the statement is true or false
True
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In 2000, Michael purchased land for $100,000. Over the years, economic conditions deteriorated, and the value of the land declined to $60,000. Michael sells the property in this year, when it is subject to a $30,000 nonrecourse mortgage. The buyer pays Michael $34,000 cash and takes the property subject to the mortgage. Michael incurs $5,000 in real estate commissions. Michael's gain or loss on the sale is
A. $36,000 loss. B. $1,000 loss. C. $4,000 gain. D. $41,000 loss.
The supplier offers the Krewe of Orpheus a deal; if they will buy at least 50,000 at a time, they will pay only 4.99 cents each, and if they buy at least 100,000 at a time, they will pay only 4.98 cents each. What is the optimal order quantity?
The Krewe of Orpheus maintains a supply of swizzle sticks for events throughout the year. Demand for swizzle sticks is shockingly low, a quick check of krewe records from last year reveals that they used only 585,000, but the krewe president believes that they should be good stewards of what they have, so they seek to manage this inventory using the EOQ policy, although they prefer to refer to it as an EOKrewe policy for obvious reasons. Swizzle sticks are not expensive items, they cost a nickel apiece largely due to the club logo printed on each one. This also serves to increase the lead time as they can't be obtained from a standard restaurant supply house. Instead, they must be ordered with an eye towards the six day lead time. It costs $15 to place an order, most of this cost is a result of explaining the meaning of "Laissez les bons temps rouler" and why it should be printed on the edge of each swizzle stick. Holding cost is 20% of purchase price. A) 41,892 B) 46,837 C) 50,000 D) 100,000
Which of the following statements is CORRECT?
A. The "break point" as discussed in the text refers to the point where the firm's tax rate increases. B. The "break point" as discussed in the text refers to the point where the firm has raised so much capital that it is simply unable to borrow any more money. C. The "break point" as discussed in the text refers to the point where the firm is taking on investments that are so risky the firm is in serious danger of going bankrupt if things do not go exactly as planned. D. The "break point" as discussed in the text refers to the point where the firm has raised so much capital that it has exhausted its supply of additions to retained earnings and thus must raise equity by issuing stock. E. The "break point" as discussed in the text refers to the point where the firm has exhausted its supply of additions to retained earnings and thus must begin to finance with preferred stock.
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 8,000Variable costs per unit: Direct materials$37Direct labor$56Variable manufacturing overhead$4Variable selling and administrative expense$2Fixed costs: Fixed manufacturing overhead$312,000Fixed selling and administrative expense$448,000 There were no beginning or ending inventories. The absorption costing unit product cost was:
A. $93 per unit B. $136 per unit C. $97 per unit D. $194 per unit