Dividends, Revenues, and Expenses All

question 18

Multiple Choice

Dividends, revenues, and Expenses all:

• A)start with the same chart of account number.
• B)start with different chart of accounts numbers.
• C)appear in the chart of accounts under assets.
• D)appear in the chart of accounts under liabilities.

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Definitions:

Common-sized Balance Sheet

A balance sheet in which each line item is expressed as a percentage of total assets, facilitating comparison with other companies regardless of size.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement, allowing for easy comparison and analysis of different-sized companies.

Cost Of Goods Sold

Costs directly linked to the creation of products sold by a company, including expenses for materials, labor, and overhead.

Horizontal Analysis

An analysis technique that evaluates trends over time by comparing financial statement line items or ratios across multiple periods.