An Example of an Analytical Procedure Is the Comparison Of

question 11

Multiple Choice

An example of an analytical procedure is the comparison of:

• A)recorded amounts of major disbursements with appropriate invoices.
• B)results of a statistical sample with the expected characteristics of the actual population.
• C)computer-generated data with similar data generated by a manual accounting system.
• D)financial information with similar information regarding the industry in which the entity operates.

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Definitions:

Downward-Sloping Demand

A common economic principle where the quantity demanded of a good or service decreases as its price increases.

Quantity Tax

A tax that is levied on the quantity of a good produced or sold, rather than its price.

Marginal Cost

The rise in overall expenses resulting from the production of an extra unit of a product or service.

Elasticity of Demand

The degree to which the quantity demanded of a good or service varies with its price. Generally, a high elasticity indicates that demand is sensitive to price changes.