Question

In: Finance

Which of the following is a problem which sometimes arise when one is conducting financial statement...

Which of the following is a problem which sometimes arise when one is conducting financial statement analysis?

Multiple Choice

  • All of the above

  • Different firm’s may use different fiscal years.

  • Many firms are conglomerates which do not fit well into a single industry category.

  • In globally dispersed industries differing accounting standards make comparisons complex.

  • One time events may give misleading signals concerning financial performance.

Solutions

Expert Solution

All of the given statements are leading to problem for analyst who are conducting financial statement analysis because there are multiple companies who choose different type of fiscal years because they have the seasonality of operations and there will be one time events and different conglomerate and accounting standards as well.

Correct answer will be option (A) All of the above.

jeff jeffy answered 2 years ago
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