When using the worksheet method to analyzing noncash accounts , no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.

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It is more efficient to start with Retained Earnings and proceed upward in the account listing because it allows the analyst to see how the noncash accounts are related to each other and to the income statement.

When Using the Worksheet Method to Analyzing Noncash Accounts