When Doing External Analysis,many of the Reasons Why the Days

question 56

True/False

When doing external analysis,many of the reasons why the days' sales in receivables is abnormally high or low cannot be determined without access to internal information.

---

Definitions:

Worksheet

A worksheet is often a piece of paper or a digital document used by accountants to prepare adjustments and end-of-period financial statements.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, leading to its net income or loss.

Statement of Owner's Equity

A financial document showing the changes in the equity of a company over a specified period, including additions through earnings and subtractions due to withdrawals.

Debits

These represent transactions that increase assets or expenses or decrease liabilities, equity, or revenue in a company's accounts.