Place the following steps involved in financial statement analysis in the proper order:
I.Determine the purpose and context of the analysis.
II.Develop conclusions and recommendations.
III.Collect information needed for the analysis.
IV.Analyze and interpret the metrics.
V.Prepare common-size analysis and calculate ratios.
A)I,III,V,IV,II
B)I,II,III,IV,V
C)V,I,III,IV,II
D)IV,III,V,I,II

Question

Quizplus · Accepted Answer

Financial statement analysis should start with determining the purpose and context of the analysis followed by collecting the necessary information for analysis. Then, common-size analysis and ratio calculation should be performed before analyzing and interpreting the metrics. Finally, conclusions and recommendations can be made based on the analysis.

Place the Following Steps Involved in Financial Statement Analysis in the Proper