Which of the Following Is Not a Common Type of Comparison

question 62

Multiple Choice

Which of the following is not a common type of comparison in accounting?

• A)Comparisons of sales growth between companies.
• B)Comparisons of earnings per share between companies.
• C)Comparisons of earnings this year with earnings for the same company last year.

---

Definitions:

Investing Activities

Financial operations that involve the purchase and sale of long-term assets and other investments not considered cash equivalents.

Financing Activities

Refers to the transactions and events that affect long-term liabilities and equity of a company, including issuing debt, selling shares, and paying dividends.

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.