Which of the Following Is a Difference Between Internal Comparison

question 10

Multiple Choice

Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis?

• A) An internal comparison reveals unexpected relationships within a company, whereas an external comparison reveals the absence of expected relationships outside a company.
• B) An internal comparison involves comparing a company with the industry as a whole, whereas an external comparison involves comparing a company's current performance with its past experience.
• C) An internal comparison is done by an accountant or auditor, whereas an external comparison is done by a forensic accountant.
• D) An internal comparison allows the examination of changes within a company over time, whereas an external comparison reveals the company's relative performance and financial standing.

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Definitions:

Catalysts

Substances that speed up chemical reactions without being consumed or altered in the process, critical in facilitating various biological and industrial processes.

Cofactor

Nonprotein component of an enzyme, such as coenzymes and inorganic ions essential for enzyme action.

RNA

Ribonucleic acid, a nucleic acid present in all living cells, plays a role in transmitting genetic information and protein synthesis.

Single-Stranded

Refers to the structure of nucleic acids, such as DNA or RNA, consisting of a single linear chain of nucleotides.