When comparing the ﬁnancial statements of one ﬁrm with those of another ﬁrm, a problem that may
be encountered is that either one, or both, of the ﬁrms may be conglomerates and thus have unrelated lines of business.

Question

Quizplus · Accepted Answer

Conglomerates may have a mixture of different business lines which makes it difficult to compare their financial statements with those of other firms.

When Comparing the ﬁNancial Statements of One ﬁRm with Those