To be useful for decision making, absolute dollar amounts in financial statements need to be compared with other information. How many of these are possible comparisons?
$\bullet$Prior year results
$\bullet$Current year sales, total assets etc.
$\bullet$Results of similar businesses or industry averages
A) 0
B) 1
C) 2
D) 3

Question

Quizplus · Accepted Answer

All three comparisons are possible and useful for decision making. Comparing financial statements to prior year results, current year sales or total assets, and results of similar businesses or industry averages can provide valuable insights.

To Be Useful for Decision Making, Absolute Dollar Amounts in Financial