Assume You Have Prepared a Horizontal Analysis of Your Company's

question 61

Essay

Assume you have prepared a horizontal analysis of your company's balance sheet and income statement and have found some account balances you believe need to be investigated.What would be a cause of each of the following changes in account balances?
a.Decrease in accrued salaries
b.Sales increased by a greater percentage than cost of goods sold
c.Accounts receivable decreased
d.Significant drop in long-term debt
e.Decrease in retained earnings

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Definitions:

Grant Certiorari

A legal term referring to the Supreme Court's decision to hear a case, allowing for judicial review of a lower court's decision.

Supreme Court of the United States

The highest federal court in the United States, consisting of nine justices who interpret the Constitution and adjudicate cases of national significance.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

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Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.