Which of the Following Can Be Used to Simultaneously View

question 41

Multiple Choice

Which of the following can be used to simultaneously view the relationships between all numbers on the balance sheet or income statement?

• A) Horizontal analysis
• B) Vertical analysis
• C) Ratio analysis
• D) all of the above

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Definitions:

Internal Control

The process implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Purchase Discounts

A reduction in the price of goods bought, usually for early payment or in bulk quantity.

Net Method

An accounting technique that reports invoice amounts and accounts payable after deducting any available discounts for early payment.

Cash Discount

A reduction in the price paid for goods or services offered to the buyer as an incentive for early payment.