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Assume you have prepared a horizontal analysis of your company's balance sheet and income statement ...

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Assume you have prepared a horizontal analysis of your company's balance sheet and income statement ...

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 each 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

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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