Internal and external comparisons, made during financial ...

[renzo156]

Internal and external comparisons, made during financial statement analysis, can reveal unexpected relationships or the absence of expected relationships.
 
  Indicate whether the statement is true or false

Question 2

The purchase of an asset (like Equipment) on account will
 a. increase total liabilities and decrease total assets.
  b. have no effect on total assets or total liabilities.
  c. increase total assets and increase total liabilities.
  d. increase total assets and increase owner's equity.
  e. increase total assets and decrease owner's equity.

[carojassy25]

Answer to Question 1

TRUE
Explanation: Financial statements analysis requires both internal and external comparisons, which can reveal unexpected relationships or the absence of expected relationships.

Answer to Question 2

C