Benford's Law is:
A) An algorithm that predicts the probability of fraud within the company.
B) A tool that converts financial statements to percentages
C) An algorithm that accurately predicts the probability of selected digits of groups of numbers in a random sample.
D) The number of dollars of borrowed funds for every dollar invested.

Question

Quizplus · Accepted Answer

B: This is a vertical analysis
D: This is the debt-to-equity ratio.

Benford's Law Is