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Intra-company analysis is based on comparisons with competitors.

A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees. If the company fails to make the end-of-period adjusting entry to move the portion of these fees that has been earned to a revenue account, one effect will be:

Profitability is the ability to generate positive market expectations.

A credit is used to record an increase in all of the following accounts except:

Total asset turnover reflects a company’s ability to use its assets to generate sales and is an important indication of operating efficiency.

Use the following information to calculate cash paid for salaries:           Salaries expense $ 175,000   Salaries payable, January 1   20,000   Salaries payable, December 31   12,000  

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

The building blocks of financial statement analysis include (1) liquidity, (2) salability, (3) solvency, and (4) profitability.

A credit is used to record an increase in all of the following accounts except:

Professor Urquhart accessed               annual report from its website as an example of places to get financial information for a company.