Comparing expenses to prior years' expenses is an effective analytical procedure for accounts payable because expenses from year to year are:
A) variable.
B) dynamic.
C) relatively stable.
D) erratic.

Question

Quizplus · Accepted Answer

Comparing expenses to prior years' expenses is an effective analytical procedure for accounts payable because expenses from year to year are relatively stable. While there may be some slight variation, a company's general expenses should remain relatively constant from year to year. This makes comparing expenses to prior years' expenses a useful way to identify anomalies or potential errors.

Comparing Expenses to Prior Years' Expenses Is an Effective Analytical