_________________ Analysis Assists Users in Their Decision Making by Expressing

question 2

Short Answer

_________________ analysis assists users in their decision making by expressing an entity's financial performance and position in relative terms.

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Definitions:

Contra-Asset

An account on the balance sheet that reduces the value of an associated asset, such as accumulated depreciation.

Payroll Taxes

Fees applied to employers and employees, typically based on a percentage of the salaries paid by employers to their employees.

Employer's Portion

The part of payroll taxes and benefits expenses that an employer is responsible for, as opposed to the portion paid by employees.

Gross Earnings

The total income earned by an individual or business before any deductions or taxes are applied.