Comparing Expenses to Prior Years Is an Effective Analytical Procedure

question 45

Multiple Choice

Comparing expenses to prior years is an effective analytical procedure for accounts payable because expenses from year to year are

• A)relatively stable.
• B)erratic.
• C)variable.
• D)dynamic.

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Definitions:

State Taxes Paid

State Taxes Paid includes any taxes that individuals or businesses pay to state governments, which can include income tax, sales tax, and property tax.

Tax Return

A formal document filed with a government body, reporting income, expenses, and other pertinent tax information, used to calculate tax liability.

Reports Income

The process of declaring income received during a tax year on one's tax return.

Taxpayer

A person or organization required to remit taxes to governmental bodies at any level, including federal, state, or municipal.