When analyzing financial statements, remember that profits can be increased and expenses can be decreased to make the records look better ______.
A) in the short run
B) in the long run
C) for tax purposes
D) for bank audits

Question

Quizplus · Accepted Answer

Profits can be manipulated in the short run through various accounting practices to make a company's financial performance appear better than it actually is. This is not sustainable in the long run.

When Analyzing Financial Statements, Remember That Profits Can Be Increased