Which of the following is a question an analyst would ask when assessing the quality of a firm's financial statements?
A) Are the company's products designed to meet a specific market segment?
B) Has the firm integrated forward into retailing to final consumers?
C) Is the firm diversified across several geographical markets?
D) Do earnings include nonrecurring gains or losses?

Question

Quizplus · Accepted Answer

An analyst would ask if earnings include nonrecurring gains or losses to assess the quality of a firm's financial statements. This is because nonrecurring items can distort the true financial performance of a company and make it difficult to compare it to other companies. Options A, B, and C are not related to the assessment of financial statements.

Which of the Following Is a Question an Analyst Would