This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is a difference between internal comparison and external comparison with ... (Read 51 times)

ereecah

  • Hero Member
  • *****
  • Posts: 530
on: Jul 6, 2018
Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis?
 
  A) An internal comparison reveals unexpected relationships within a company, whereas an external comparison reveals the absence of expected relationships outside a company.
  B) An internal comparison involves comparing a company with the industry as a whole, whereas an external comparison involves comparing a company's current performance with its past experience.
  C) An internal comparison is done by an accountant or auditor, whereas an external comparison is done by a forensic accountant.
  D) An internal comparison allows the examination of changes within a company over time, whereas an external comparison reveals the company's relative performance and financial standing.

Question 2

Accounts Payable would be shown on the ___________________ .
 a. debit side of the trial balance
  b. credit side of the trial balance
  c. not on the trial balance
  d. debit and credit side of the trial balance


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gabrielle_lawrence

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jul 6, 2018
Answer to Question 1

D
Explanation: D) An internal comparison involves comparing the subject company's current performance and financial condition with its past experience. Such comparisons allow the examination of changes within a company over time. In contrast, external comparisons involve comparing the subject company with similar companies or with the industry as a whole (industry averages). Such comparisons reveal the company's relative performance and financial standing.

Answer to Question 2

B


ereecah

  • Member
  • Posts: 530
Reply 2 on: Jul 6, 2018
YES! Correct, THANKS for helping me on my review

dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Internal view of the heart illustrating the heart chambers, heart layers, and major blood vessels as Internal view of the heart illustrating the heart chambers, heart layers, and major blood vessels as
Internal anatomy of an earthworm Internal anatomy of an earthworm
Comparison of (a) male and female skulls and (b) male and female pelves. Comparison of (a) male and female skulls and (b) male and female pelves.
Comparison of Dietary Supplements (continued) Comparison of Dietary Supplements (continued)
Comparison of Paper Medical Records and Electronic Health Records Comparison of Paper Medical Records and Electronic Health Records
A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ... A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ...
Video: Peptide Bond Formation Animation

For a complete list of videos, visit our video library