In the Long-Term Debt and Owner's Equity Process,the Auditor Might

question 5

Multiple Choice

In the long-term debt and owner's equity process,the auditor might perform which of the following analytical procedures

• A)Compare the balances in the following accounts for the current year to the prior year: long-term debt,interest expense,capital stock,additional paid in capital,and retained earnings
• B)Calculate the debt to equity ratio for the current year and prior years
• C)Calculate the current ratio for the current year and prior years
• D)Compare the transactions in the following accounts for the current year to the prior year: long-term debt,interest expense,capital stock,additional paid in capital,and retained earnings
• E)Compare the balances in the following accounts for the current year to the prior year: long-term debt,accrued interest expense,accounts payable,capital stock,paid in capital,and retained earnings
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

Null Hypothesis

A statement in statistical analysis that proposes there is no difference or effect, serving as the default position until evidence indicates otherwise.

Wilcoxon Rank Sum Test

A non-parametric statistical hypothesis test used to compare two independent samples, based on the ranks of their combined observations.

Standard Deviation

A tool to evaluate the distribution's breadth or heterogeneity of a set of data.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same distribution.