What is the first step in the successful analysis of an entity?
A)Read the financial statements.
B)Prepare a financial ratio analysis.
C)Interview management.
D)Find as much information as possible about the entity.

Question

Quizplus · Accepted Answer

The first step in the successful analysis of an entity is to find as much information as possible about the entity. This includes looking at financial statements, conducting a financial ratio analysis, and interviewing management, but all of these steps rely on having a solid understanding of the entity itself. Thus, finding information should be the first step.

What Is the First Step in the Successful Analysis of an Entity