Account 2016 2017 2018 Other Expenses $4 500 $4 000 $3 900 The trend in Other Expenses is

Question

BlackTom AI · Accepted Answer

To evaluate the trend, I will examine the numbers for Other Expenses across the three years: 2016 = 4500, 2017 = 4000, 2018 = 3900.

Option a: decreasing unfavourably. This would imply that expenses are decreasing and that decrease is bad for the business. However, lower expenses typically indicate improved efficiency or cost control, which is generally favourable, not unfavourable, unless there is an underlying issue causing the drop. So this option is not the best description of the trend.

Option b: increasing favourably. The data clearly show a decrease in expenses from 2016 to 2018, not an increase. Therefore this statement contradicts the observed numbers.

Option c: decreasing favourably. The expenses fall from 4500 to 4000 to 3900, which is a downward trend. In most accounting contexts, reducing expenses is considered favourable because it improves net income, assuming revenue remains constant. This aligns with the observed pattern.

Option d: increasing unfavourably. Since the numbers do not show an increase, this option does not describe the data. It would be incorrect given the actual downward trend.

Overall, the evidence shows a downward trend in Other Expenses over the three years, and such a reduction is generally regarded as favourable for financial performance. The phrasing in option c best captures both the direction (decreasing) and the evaluative judgment (favourably).

MUF0022 Accounting Unit 2 - Semester 2, 2025 Quiz: Trends, Variances & Benchmarks

Account 2016 2017 2018 Other Expenses $4 500 $4 000 $3 900 The trend in Other Expenses is

查看解析

登录即可查看完整答案

类似问题

Trend analysis is a process in which we compare a company’s results, or the results of a ratio, over time.

A pattern formed over time related to one account is known as a

A pattern formed over time related to one account is known as a

Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a firm's performance over time.

Blank ______ analysis is a form of horizontal analysis that can reveal patterns in data across periods by comparing period amounts by base period amounts.

Horizontal analysis is also known as

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单