Question: When looking at the income statement prepared by computerized accounting software that shows a comparison between 2 periods of time, one must ensure the time
When looking at the income statement prepared by computerized accounting software that shows a comparison between 2 periods of time, one must
| ensure the time periods are comparable ex. month to month or year to year | ||
| make sure a balance sheet is prepared first in a computerized system or reports cannot be compared | ||
| ensure the cash balance is not negative or make an adjusting entry before a comparison can be made | ||
| review each line of the income statement and trace back all transactions to ensure the accuracy of the reports produced |
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