Standards for comparisons in financial statement analysis include:
A)Intra-company standards.
B)Competitors' standards.
C)Industry standards.
D)Guidelines (rules of thumb).
E)All of the choices are standards for comparisons.

Question

Quizplus · Accepted Answer

All of the choices (intra-company, competitors', industry, and guidelines) are standards for comparisons in financial statement analysis. Each type of comparison provides useful information for evaluating a company's financial performance and making informed business decisions. Intra-company standards compare a company's current financial data to its own historical data to assess its growth and trends over time. Competitors' standards compare a company's financial data to that of its direct competitors to identify areas of strength and weakness. Industry standards compare a company's financial data to that of the overall industry to understand its position in the market. Guidelines, or rules of thumb, provide general benchmarks or ratios for specific financial metrics that can be used to evaluate a company's financial health.

Standards for Comparisons in Financial Statement Analysis Include