Industry standards for financial statement analysis:
A)Are based on a single competitor's financial performance.
B)Are set by the government.
C)Are available for the financial performance and condition of the company's industry.
D)Are based on rules of thumb.
E)Compare a company's income with its prior year's income.

Question

Quizplus · Accepted Answer

Industry standards for financial statement analysis are available for the financial performance and condition of the company's industry. These standards allow for comparison of a company's performance with others in the same industry, providing a more relevant and useful analysis. Standards are not set by the government or based on a single competitor's performance, and they are not simply rules of thumb or comparisons to prior year's income.

Industry Standards for Financial Statement Analysis