5. A change in accounting principle is permitted when a. management ca


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5. A change in accounting principle is permitted when a. management can show that the new principle is preferable to the old principle. b. the effects of the change are clearly disclosed in the income statement. c. the effect

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5. A change in accounting principle is permitted when
a. management can show that the new principle is preferable to the old principle.

b. the effects of the change are clearly disclosed in the income statement.

c. the effect of the change in accounting principle on net income will not be significant.

d. both management can show that the new principle is preferable to the old principle and the effects of the change are clearly disclosed in the income statement.

6. Comparisons with other companies to provide insight into a company's competitive position is an

a. intracompany basis comparison.

b. intercompany basis comparison.

c. industry averages comparison.

d. none of these answer choices are correct.

7. A technique for evaluating a series of financial statement data over a period of time is called

a. horizontal analysis.

b. vertical analysis.

c. ratio analysis.

d. none of these answer choices are correct.

8. A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount is called

a. horizontal analysis.

b. vertical analysis.

c. ratio analysis.

d. none of these answer choices are correct.

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