Which of the Following Is an Analytical Procedure That Should

question 5

Multiple Choice

Which of the following is an analytical procedure that should be applied to the income statement?

• A)Select sales and expense items and trace amounts to related supporting documents.
• B)Ascertain that the net income amount in the statement of cash flows agrees with the net income amount in the income statement.
• C)Obtain from the proper client representatives,the beginning and ending inventory amounts that were used to determine costs of sales.
• D)Compare the actual revenues and expenses with the corresponding figures of the previous year and investigate significant differences.

---

Definitions:

IREF

IREF often stands for reference current, a specific, stable current used as a reference point in electronic circuits for biasing and stabilizing purposes.

Internal Reference

A predetermined or fixed point within a system used as a standard for measurement or comparison.

ICON

A graphical symbol representing a program, function, data, or file on a computer interface.