Question: Describe why it would be important to compare your balance sheet to the balance sheets of similar businesses or industry averages.The video this week described

Describe why it would be important to compare your balance sheet to the balance sheets of similar businesses or industry averages.The video this week described how Accounts Receivable and the Allowance for Doubtful Accounts can impact your income statement, and how this number can be manipulated if the appropriate AR procedures are not followed. What are the key points of the AR process that must be followed.

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Comparing your balance sheet to the balance sheets of similar businesses or industry averages is important for several reasons 1 Performance evaluation Comparing your balance sheet to similar businesses or industry averages allows you to assess your companys financial performance relative to its peers It provides insights into how well your business ... View full answer

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