Which of the Following Is the Least Effective Way to Compare

question 5

Multiple Choice

Which of the following is the least effective way to compare financial statements from one period to the next when searching for anomalies?

• A) Comparing account balances in the statements from one period to the next
• B) Calculating key ratios and comparing them from one period to the next
• C) Performing horizontal analysis
• D) Performing vertical analysis

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Definitions:

Secondary Categories

Additional classifications or groupings that are not primary but serve to further organize or differentiate entities.

Diversity

Refers to the inclusion of individuals from various backgrounds, identities, and perspectives within a group or organization.

Ethical Dilemma

An ethical dilemma is a situation where an individual faces a difficult decision involving a conflict between moral imperatives, where to obey one would result in transgressing another.

Ethics Competency

The ability to recognize ethical issues, make informed ethical judgments, and take appropriate ethical actions reflecting both the standards of professional practice and the broader community expectations.