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High Point Furniture Company Manufactures Furniture

Question 72

Multiple Choice

High Point Furniture Company manufactures furniture. The company has applied for a sizeable loan to expand its operations. Based on the company's annual report, the loan officer concludes that High Point is very profitable and appears to have a strong financial position. However, watching the nightly news on television that evening, the banker discovers that High Point is a defendant in a class action lawsuit related to defective products. Serious injuries were allegedly caused by the company's infant high chairs overturning. The television news report is an example of financial information that is


A) predictable.
B) conservative.
C) relevant.
D) comparable.

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