Which type of analysis could reveal that a company is relying heavily on debt financing?
A. Trend analysis
B. Horizontal analysis
C. Common size statements
D. The fixed asset turnover ratio
Answer: C
You might also like to view...
Effective internal control requires a department to purchase supplies on its own
Indicate whether the statement is true or false
Analytical procedures consist of evaluating financial information by studying financial and nonfinancial data and looking for plausible or implausible relationships. The procedures can range from making simple comparisons to using complex models involving many relationships and elements of data. They can involve time-series comparisons of recorded amounts and ratios developed from recorded amounts, and they always include comparison to expectations developed by the auditors.
Required: A) Describe the broad purposes of analytical procedures. B) Identify the sources of information from which an auditor develops expectations.
The relationship between price and demand is called:
a. elasticity of demand b. sensitivity of price c. supply sensitivity d. elasticity of price e. a and b only
James is always keen on putting his ideas into action regardless of the outcome. He perfects his craft by trying out different possibilities. If he is dissatisfied with the result, he tries out a different method but does not give up. Which entrepreneurial characteristic is highlighted in the given scenario?
-docility -self-reliance -vision -conformity