Which of the following does NOT correctly complete this sentence: The financial statements of a company....
A) Can be useful to the financial manager of the firm even though they employ accounting figures and not actual cash flows.
B) Are useful for analysts outside the firm.
C) Are generally considered a useful second best source of information for analysts of the firm if only because this information is often all that is readily available.
D) Are useful for looking at the trends in financial performance of a firm.
E) Are rarely comparable from year to year since accountants are constantly changing accounting methods resulting in very little consistency from year to year.

Question

Quizplus · Accepted Answer

The financial statements of a company are designed to be comparable from year to year. Accounting standards and principles aim to ensure consistency and comparability in financial reporting, contrary to the claim in option E that accountants are constantly changing accounting methods resulting in very little consistency.

Which of the Following Does NOT Correctly Complete This Sentence