Assume You Have Prepared a Horizontal Analysis of Your Company's

question 7

Essay

Assume you have prepared a horizontal analysis of your company's balance sheet and income statement and have found some account balances you believe need to be investigated.What would be a cause of the following changes in account balances?
a.Decrease in accrued salaries
b.Sales increased by a greater percentage than cost of goods sold
c.Accounts receivable decreased
d.Significant drop in long-term debt
e.Decrease in retained earnings
Unit 12-1,

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Definitions:

Percent

A part or other object per hundred, used in expressing ratios, fractions, or comparison between parts.

Internal Disease

A disease affecting one or more internal organs of the body.

Larynx

A voice box located in the throat responsible for producing sound.

Persistent Hoarseness

A prolonged and constant abnormal change in voice quality, often indicating a need for medical evaluation to determine underlying causes.