All of the Following Are True About Analysis at the Account

question 16

Multiple Choice

All of the following are true about analysis at the account level except

• A) It is a method for separating fixed and variable costs
• B) It uses information from the general ledger
• C) It is a qualitative method for separating costs
• D) It requires very little judgment to determine cost behavior

---

Definitions:

Trial Balance

A bookkeeping worksheet wherein the balances of all ledgers are compiled into debit and credit columns to ensure that total debits equal total credits.

Income Statement

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

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or entity.

Iodine Contrast

A type of contrast agent used in medical imaging that contains iodine, which helps enhance the visibility of internal structures.