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How Does Horizontal Analysis of Financial Statements Help Forensic Accountants

Question 24

Multiple Choice

How does horizontal analysis of financial statements help forensic accountants in their investigations?


A) It compares key financial statement items over time to identify changes.
B) It uses Dupont model to calculate and compare the return on equity.
C) It helps forensic accountants in identifying fraudulent journal entries.
D) It allows the comparison of financial statements regardless of firm size.

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