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Which of the following is most likely to be considered an analytical procedure? Multiple Choice О O Testing purchases at year

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Answer #1

Answer :

Option - B, Comparing inventory balances to recent sales activities.

Explanation :

Analytical procedure consist of analysis of relationship between financial and non financial data. Some examples of analytical procedures are inquiry, inspection, observation, reperformance, recalculation etc.

Hence, Comparing inventory balances to recent sales activities is most likely to be conidered as an analytical procedure.

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