Which of the following best describes year-to-year comparisons of account balances?
A)Time analyses.
B)Reasonableness tests.
C)Ratio analyses.
D)Trend analyses.

Question

Quizplus · Accepted Answer

Year-to-year comparisons of account balances are best described as trend analyses because they involve analyzing changes in the account balance over time to identify patterns and trends. Time analyses refer to the analysis of trends over a specific time period or time frame. Reasonableness tests involve comparing account balances to what would be expected based on industry standards or previous performance. Ratio analyses involve comparing one financial metric to another to identify relationships and trends.

Which of the Following Best Describes Year-To-Year Comparisons of Account