All of the following are reasons that one should be cautious in interpreting financial statements except ____________.
A) Firms can take steps to over- or understate earnings at various times.
B) It is difficult to compare two firms that use different depreciation methods.
C) Financial managers have quite a bit of latitude in using accounting rules to manage their reported earnings.
D) All of these are reasons to be cautious in interpreting financial statements.

Question

Quizplus · Accepted Answer

All the given options are valid reasons to be cautious when interpreting financial statements, as they highlight potential manipulations and differences in accounting practices that can affect the accuracy and comparability of financial data.

All of the Following Are Reasons That One Should Be