How Do Informational Reports and Analytical Reports Differ

question 56

Multiple Choice

How do informational reports and analytical reports differ?

• A)Informational reports emphasize facts; analytical reports emphasize reasoning and conclusions.
• B)Informational reports are intended for internal audiences; analytical reports are intended for external audiences.
• C)Informational reports are written using a formal writing style; analytical reports are written using an informal writing style.
• D)Informational reports emphasize reasoning and conclusions; analytical reports emphasize facts.

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Definitions:

Straight-Line Method

This is a depreciation method where an equal amount of the asset's cost is allocated as an expense each year over its useful life.

Salvage Value

The expected residual cost of an asset by the end of its functional life.

Commercial Substance

A criterion indicating that a transaction significantly changes the economic position or cash flows of a company.

Trade-In Allowance

The amount credited to the buyer of a new item for the value of the item being replaced or traded in.