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

Question

Quizplus · Accepted Answer

Management standards are not considered as one of the standards for comparisons in financial statement analysis because they are subjective and may not provide an objective measure of performance. Standards for comparisons typically include guidelines (rules of thumb), competitors' standards, intra-company standards, and industry standards, which are more objective and provide a benchmark for assessing a company's financial performance.

Standards for Comparisons in Financial Statement Analysis Do Not Include