Overall Analysis of Income Statement Accounts May Bring to Light

question 52

Multiple Choice

Overall analysis of income statement accounts may bring to light errors, omissions, and inconsistencies not disclosed in the overall analysis of balance sheet accounts. The income statement analysis can best be accomplished by comparing:

• A)income statement ratios to balance sheet ratios.
• B)revenue and expense account balances to the monthly reported net income.
• C)income statement ratios to published industry averages.
• D)revenue and expense account totals to the corresponding figures of the preceding years.

---

Definitions:

Hassles

Minor irritations or annoyances that occur in daily life and can accumulate to cause stress.

Eustress

The effect of positive events, or the optimal amount of stress that people need to promote health and well-being.

Stressors

Events, situations, or stimuli that cause stress, triggering a physical or emotional response.

Pressure

The force per unit area applied to an object in a direction perpendicular to the surface.