Which one of the following statements is correct?
A) Book values should always be given precedence over market values.
B) Financial statements are frequently the basis used for performance evaluations.
C) Historical information has no value when predicting the future.
D) Potential lenders place little value on financial statement information.
E) Reviewing financial information over time has very limited valuE.

Question

Quizplus · Accepted Answer

Financial statements are commonly used for performance evaluations by stakeholders such as investors, creditors, and management. They provide insight into a company's financial health and profitability over time, allowing for comparison to industry benchmarks and trends.

Which One of the Following Statements Is Correct