true or false

4 1. An internal control system, once instituted, should not be changed. 5 8 9 11 6 2. The calculation of percentage change figures for specific income statement 7 items when viewed over multiple periods can identify the direction in which a business is going 10 3. Comparative horizontal balance sheet analysis shows each individual account, subtotal and total balance changes from one balance sheet date to the next 12 Changes are described in both dollars and percentages. 13 14 4. Accrual accounting is based on the principle of matching sales revenue with expenses. 16 17 5. Contributory income is the income for a department, after indirect expenses 18 have been deducted. Multiple choice True False Ratios Analysis Bank Red Closing Entries 15