Standards for comparisons in financial statement analysis include:
A) Intracompany standards.
B) Competitors' standards.
C) Industry standards.
D) Guidelines (rules of thumb).
E) All of these.

Question

Quizplus · Accepted Answer

Standards for comparisons in financial statement analysis include intracompany standards (comparing current year results to prior year results), competitors' standards (comparing a company's performance to that of its competitors), industry standards (comparing a company's performance to the industry averages), and guidelines or rules of thumb (such as comparing a company's debt to equity ratio to industry norms). Therefore, all of these options are valid choices for standards in financial statement analysis.

Standards for Comparisons in Financial Statement Analysis Include