Which of the Following Is a Difference Between Internal Comparison

question 10

Multiple Choice

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.

---

Definitions:

Legal Investigations

The process of gathering facts and evidence to ascertain the truth for legal proceedings.

Draft Legal

The process of creating initial versions of legal documents, including contracts, legal memos, and court pleadings, which are then reviewed and revised as necessary.

Interview Clients

Interviewing clients involves attorneys gathering information from their clients to better understand their case or legal matter.

Narrow Responsibilities

Specific, limited duties or tasks assigned within a broader job or role.