The following is summary of information presented on the financial statements of a company on December 31, 2015. What would a horizontal analysis report show with respect to net sales revenue?
A)a 20% increase in net sales revenue
B)a 120% decrease in net sales revenue
C)a decrease of $ 50,000 in net sales revenue
D)an increase of $50,000 in net sales revenue

Question

The following is summary of information presented on the financial statements of a company on December 31, 2015.  What would a horizontal analysis report show with respect to net sales revenue?
A)a 20% increase in net sales revenue 
B)a 120% decrease in net sales revenue 
C)a decrease of $ 50,000 in net sales revenue 
D)an increase of $50,000 in net sales revenue

Quizplus · Accepted Answer

A horizontal analysis compares financial data over multiple periods. This question does not provide information on the previous year's net sales revenue, but it does provide information on the current year's net sales revenue. Therefore, the only choice that makes sense is A, a 20% increase in net sales revenue.

The Following Is Summary of Information Presented on the Financial