A Comparison of Account Balances to a Single Line Item

question 58

Multiple Choice

A comparison of account balances to a single line item, such as total assets, is termed ________.

• A)common-size analysis
• B)trend analysis
• C)substantive procedures
• D)compliance audit

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Definitions:

Equal Value

A condition or state where two or more items, services, or amounts have the same worth or significance.

Due Payment

The amount of money that is scheduled to be paid at a certain date as part of a financial obligation.

Delay Payment

The act of postponing a payment until a later time, often resulting in additional fees or interest.

Interest Rate

The percentage of a loan that comes with an interest charge to the borrower, often stated as an annual percentage of the loan balance.