Before buying a business,one should engage in a thorough analysis of the firm's financial statement to see if any of them may be misleading.An example of that would be
A) cutting the labor force temporarily to reduce expense and improve profits.
B) maintenance of equipment has been reduced to cut short term expense.
C) insufficient write-offs of bad debts.
D) all of the above.

Question

Quizplus · Accepted Answer

All the options provided are examples of actions that can temporarily improve financial statements but may mislead potential buyers about the true financial health of the business.

Before Buying a Business,one Should Engage in a Thorough Analysis