A comparison of a firm's current financial ratios to those of prior years allows one to
A) accurately predict the future performance of a firm.
B) see how a firm's performance compares to that of a competitor.
C) see trends that are developing.
D) determine if the firm is performing better than the overall industry.
Answer: C
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As we move toward developing a friendship, which action might we engage in?
A. making small disclosures B. increase small talk C. we possess little personal knowledge of another person D. we hesitate to reveal personal information
When the financial statements contain a material departure from GAAP that the auditor believes is justified, where should the justification appear?
a. In a footnote. b. In a paragraph added before the scope paragraph. c. In the opening paragraph. d. In a paragraph added before the opinion paragraph.
In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ credit changes in operating working capital accounts, such as accounts receivable, inventories, or accounts payable
a. adding b. subtracting c. multiplying d. dividing e. cannot be determined from the information provided
What do most companies do first to control damage when a problem arises?
A) Consult the company's legal counsel. B) Call or e-mail the individual involved. C) Write a letter to the individual involved. D) Ignore the problem if it is unlikely to happen again.