All of the following are shortcomings of financial statement analyses except:
A)accounts reflect historical costs instead of market values.
B)trend analysis uses a common base year for comparative purposes.
C)the dollar is considered a stable monetary unit.
D)accounting policies and procedures differ among companies.

Question

Quizplus · Accepted Answer

Trend analysis, which uses a common base year for comparative purposes, is not a shortcoming of financial statement analyses. It is actually a technique used to analyze the financial statements over a period of time to identify any significant patterns or trends.

All of the Following Are Shortcomings of Financial Statement Analyses