Standards for comparisons in financial statement analysis do not include:
A)Intra-company standards.
B)Competitor standards.
C)Industry standards.
D)Management standards.
E)Guidelines (rules of thumb).

Question

Quizplus · Accepted Answer

Standards for comparisons in financial statement analysis include intra-company standards (comparing current year's performance to previous years'), competitor standards (comparing a company's performance to other companies in the same industry), industry standards (comparing a company's performance to overall industry benchmarks), and guidelines such as ratios and trends. However, management standards are not considered as a valid comparison standard as they may not be objective or transparent.

Standards for Comparisons in Financial Statement Analysis Do Not Include