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Which of the Following Is a Difference Between Internal Comparison

Question 10

Multiple Choice

Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis?


A) An internal comparison reveals unexpected relationships within a company, whereas an external comparison reveals the absence of expected relationships outside a company.
B) An internal comparison involves comparing a company with the industry as a whole, whereas an external comparison involves comparing a company's current performance with its past experience.
C) An internal comparison is done by an accountant or auditor, whereas an external comparison is done by a forensic accountant.
D) An internal comparison allows the examination of changes within a company over time, whereas an external comparison reveals the company's relative performance and financial standing.

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