Factors that influence the financial statements and evaluation methods include:
A) Inadequacy of a single financial analysis measure
B) Alternative accounting methods and procedures
C) Inflation or deflation
D) All of the above

Question

Quizplus · Accepted Answer

Financial analysis is served best by a combination of several evaluation measures. Alternative accounting procedures and inflation or deflation can influence a firm's income statement and balance sheet in addition to impairing the comparability of firms that use different methods.

Factors That Influence the Financial Statements and Evaluation Methods Include