Sensitivity Analysis May Be Used to Determine How a Result

question 130

True/False

Sensitivity analysis may be used to determine how a result will change if the original data are changed or if the original results are not achieved.

---

Definitions:

Capital Account

A financial statement that shows the changes in ownership interest of a country or an organization.

Accounting Records

Accounting Records are documents and ledgers that capture all financial transactions of an entity, serving as a basis for financial statements and audit.

Capital Balance

The amount of money that owners have invested in a firm minus any withdrawals made by the owners.

Capital Balance

The capital balance in a company's equity section represents the owner's investment, adjusted for withdrawals and profits or losses.