The purposes of financial statement analysis include all of the following except:
A)Providing information to improve efficiency and effectiveness.
B)Providing information for managing and operating the company.
C)Helping external users assess performance.
D)Helping the board of directors monitor management's performance.
E)Assuring that the company will not be the subject of an IRS audit.

Question

Quizplus · Accepted Answer

Financial statement analysis does not assure that the company will not be subject to an IRS audit. Its purposes are to provide information to improve efficiency and effectiveness, to provide information for managing and operating the company, to help external users assess performance, and to help the board of directors monitor management's performance.

The Purposes of Financial Statement Analysis Include All of the Following