What Is the Primary Difference Between Informational and Analytical Reports

question 24

Multiple Choice

What is the primary difference between informational and analytical reports?

• A)Informational reports are prepared for internal audiences,and analytical reports are prepared for external audiences.
• B)Informational reports emphasize facts,and analytical reports emphasize reasoning and conclusions.
• C)Informational reports are always organized directly,and analytical reports are always organized indirectly.
• D)All of these choices are differences between informational and analytical reports.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowing funds over a period of time, often expressed as an annual percentage of the principal.

Income Before Taxes and Interest

Net earnings of a company before accounting for interest and tax expenses, used to analyze operating performance without financing or tax influences.

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash within a specific period.

Account Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.