What is the difficulty in using horizontal, vertical, or ratio analysis?
a. The complicated calculations required to arrive at change statements.
b. Identifying the changes and speed of changes in the ratios, when the change is unexpected or unexplained.
c. Knowing when a change in account balance or relationship is significant enough to signal possible fraud.
d. Assessing the magnitude or significance of changes in account balances looking only at raw financial statement numbers.
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct.
d. Incorrect.
You might also like to view...
Department stores only face competition from other department stores as other retailing forms are not a threat to their sales and profitability
Indicate whether the statement is true or false
Assume that a company takes 5,000 hours to produce 10,000 units of a product. What is the cycle time?
A) 0.5 units per hour B) 1 hour C) 0.75 hour D) 2 hours E) 0.5 hour
George is the CEO of Fallon Inc, a multinational corporation operating in several European and Asian countries. In the past few years George has noticed several demographic, economic and legislative trends, all of which have the potential of impactinghis company’s bottom line profits. George has decided not to react to these tredns and to leave his current policies in place. What challenges/consequences might George face by ignoring these trends.
What will be an ideal response?
Which country spends more on tourism to other countries than any other group?
a. France b. UK c. US d. China