Assume you have prepared a horizontal analysis of your company's balance sheet and income statement and have found some account balances you believe need to be investigated.What would be a cause of the following changes in account balances?
a.Decrease in accrued salaries
b.Sales increased by a greater percentage than cost of goods sold
c.Accounts receivable decreased
d.Significant drop in long-term debt
e.Decrease in retained earnings

Question

Quizplus · Accepted Answer

The Answer of Assume you have prepared a horizontal analysis of your company's balance sheet and income statement and have found some account balances you believe need to be investigated.What would be a cause of the following changes in account balances?
a.Decrease in accrued salaries
b.Sales increased by a greater percentage than cost of goods sold
c.Accounts receivable decreased
d.Significant drop in long-term debt
e.Decrease in retained earnings

Assume You Have Prepared a Horizontal Analysis of Your Company's