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 68 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
Great answer, keep it coming :)

marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

A comparison of the sizes of various chemical and biological structures, and the resolving power of A comparison of the sizes of various chemical and biological structures, and the resolving power of
Comparison of normal-shaped erythro- cytes and the abnormal sickle shape noted in patients with sick Comparison of normal-shaped erythro- cytes and the abnormal sickle shape noted in patients with sick
External and internal positions. External and internal positions.
Example of the Index to External Causes. Example of the Index to External Causes.
Internal and External Loci of Control Internal and External Loci of Control
Comparison of Control by the Nervous and Endocrine Systems Comparison of Control by the Nervous and Endocrine Systems
Video: Skin Cancer

For a complete list of videos, visit our video library