Harold, a Financial Accountant in a Company, Is Asked to Identify

question 86

Multiple Choice

Harold, a financial accountant in a company, is asked to identify the changes in the company's account values between 2014 and 2016. To get the required information, he uses comparative financial statements, which state the figures for the two years side by side. These comparative financial statements make it easier for Harold to identify the changes that may have taken place during that period. In this scenario, Harold is most likely using _____ to get the required information.

• A) activity-based costing
• B) horizontal analysis
• C) liquidity index
• D) static analysis

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Definitions:

Focused Processes

Operations or activities that are streamlined and specialized to achieve higher efficiency and effectiveness in specific areas.

Increased Efficiency

The enhancement of productivity and reduction of waste within systems or processes.

Value-stream Map

A visual tool used in lean manufacturing to analyze and design the flow of materials and information required to bring a product to a customer.