Financial statement analysis must be:
A) viewed in the wider context of the industry and the political and social environments.
B) targeted to the needs of the users of the analysis.
C) as good as the base information on which the analysis is made.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Financial statement analysis is a complex process that cannot be viewed in isolation. It needs to be conducted in a wider context of the industry and the political and social environments to accurately reflect the company's standing. Moreover, the analysis should be targeted to the needs of the users of the analysis, such as investors, creditors or management. Additionally, the quality of the analysis is as good as the base information on which it is made. Therefore, all of the above options are correct.

Financial Statement Analysis Must Be