"apparent," but not the "true," financial position of a company whose sales are seasonal can differ dramatically, depending on the time of year when the financial statements are constructed.

Question

Quizplus · Accepted Answer

This statement is true. The financial position of a company whose sales are seasonal can differ depending on the time of year when financial statements are constructed. For example, a company with high sales during the holiday season may appear to have strong financials in December, but those financials may not accurately reflect the company's true financial position throughout the year.

"Apparent," but Not the "True," Financial Position of a Company