Which of the following does NOT correctly complete this sentence: The ﬁnancial statements of a company ….
A) Can be useful to the ﬁnancial manager of the ﬁrm even though they employ accounting ﬁgures and not actual cash ﬂows.
B) Are useful for analysts outside the ﬁrm.
C) Are generally considered a useful second best source of information for analysts of the ﬁrm if only because this information is often all that is readily available.
D) Are useful for looking at the trends in ﬁnancial performance of a ﬁrm.
E) Are rarely comparable from year to year since accountants are constantly changing accounting methods resulting in very little consistency from year to year.

Question

Quizplus · Accepted Answer

The statement "Are rarely comparable from year to year since accountants are constantly changing accounting methods resulting in very little consistency from year to year" is not correct. In reality, accountants strive for consistency in accounting methods to ensure comparability of financial statements over time.

Which of the Following Does NOT Correctly Complete This Sentence