A comparison of account balances to a single line item, such as total assets, is termed ________.
A)common-size analysis
B)trend analysis
C)substantive procedures
D)compliance audit

Question

Quizplus · Accepted Answer

A comparison of account balances to a single line item, such as total assets, is called common-size analysis. Trend analysis involves analyzing changes over time, substantive procedures are tests to obtain evidence about the accuracy and completeness of financial statement amounts, and a compliance audit is an examination of an entity's compliance with laws and regulations.

A Comparison of Account Balances to a Single Line Item