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Answer 1 is D. 20% decrease
Calculated as
Sale year 1 = $50000
Sale year 2 =$40000
Decrease = $10000
% decrease = $10000 *100/$50000 = 20%
Answer 2 B. Total Assets
as in vertical analysis every item is shown as % of total assets
Answer 3 D. Horizontal analysis
Answer 4. C Debt Ratio
Debt ratio is used to measure solvency of an concern
Answer 5 C. Net income/Net sales
Thank you
Chapter 13: Analysis of Financial Statements In horizontal analysis of an income statement, a company reported...
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