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Describe What an Analytical Report Is and How It Differs

question 99

Essay

Describe what an analytical report is and how it differs from an informational report. Then list three categories of analytical reports, describe each, and give an original example of each.


Definitions:

DSO

Days Sales Outstanding, a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Compensating Balances

Minimum cash balances that a borrower agrees to maintain in a demand deposit account as a condition for a loan.

Transactions Balance

The amount of money held to facilitate day-to-day financial transactions, reflecting the liquidity needed for regular expenditures.

Loan Requirement

A set of criteria established by lenders that a borrower must meet to qualify for a loan.

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