In the Context of Account Classification, Which of the Following

question 12

Multiple Choice

In the context of account classification, which of the following is a feature of portfolio analysis?

• A) It is less complex compared to ABC analysis.
• B) It requires no statistical data to classify the accounts.
• C) It uses only one factor to analyze an account.
• D) It is represented in the form of a matrix.
• E) It excludes the competitive position of the seller.

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Definitions:

Income Statement

A report indicating a business's income, outgoings, and net earnings during a defined timeframe.

Income Tax Expense

The amount of money a company or individual owes to the government based on their taxable income for a given period.

Other Revenues

Income generated from activities that are not part of a company's primary operations, such as rental income, interest income, or gains from the sale of fixed assets.

Earnings Per Share

A financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.