The Lack of Timeliness and Specificity in Financial Variances Force

question 26

True/False

The lack of timeliness and specificity in financial variances force organizations to use primarily non-financial controls to ensure that they are meeting organizational objectives.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Income Statements

A financial report summarizing a company's revenues, expenses, and profits over a specified period.

Trends

General directions in which something is developing or changing, often identified through the analysis of data over periods of time.

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.