Which of the following is the biggest concern for an analyst when reviewing the value of assets on a company's financial statement?
A)Understanding the amortization method used.
B)Estimating the age of the assets reported.
C)Understanding what assets are not reported on the financial statement.
D)Estimating the original cost of the asset.

Question

Quizplus · Accepted Answer

Understanding what assets are not reported on the financial statement is a major concern for an analyst because it can have a significant impact on the actual value of the company's assets. For example, if a company has off-balance sheet liabilities or unreported assets, this can skew the true value of the company. Understanding the amortization method used, estimating the age of the assets reported, and estimating the original cost of the asset are important considerations but are not as significant as knowing what assets are not reported on the financial statement.

Which of the Following Is the Biggest Concern for an Analyst