In analyzing the financial statements of a company, a single item on the financial statementsa. should be reported in bold-face type. b. is more meaningful if compared to other financial information. c. is significant only if it is large. d. should be accompanied by a footnote.

Question

Arely Montgomery

Business

29 July, 10:20

In analyzing the financial statements of a company, a single item on the financial statementsa. should be reported in bold-face type. b. is more meaningful if compared to other financial information. c. is significant only if it is large. d. should be accompanied by a footnote.

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Answers (2)

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Milagros Ferguson · Answer 1

b. is more meaningful if compared to other financial information

Explanation:

The financial statements includes the income statement, balance sheet, cash flow statement, etc

The analyzing of the financial statements of a company determines the current position of the company with respect to the profitability, performance, liquidity, etc

So, the single item of the financial statement should be more important as compared to the other financial information

Kathleen · Answer 2

b. is more meaningful if compared to other financial information.

Explanation:

The analysis of the financial statements that keep a record of the business activities and performance of the company and is often audited by the government agencies or the firms and this is done to ensure the accuracy and the investment purposes. A single financial statement is a meaningful when it includes the balance sheets and income statement and the cash flow statement and that are used by the large corporation for the purpose of the managerial analysis and the discussion.