When analyzing financial statements, what should you make sure to read because it can be very revealing?
A) the notes to financial statements
B) the president's comments
C) the board of directors' comments
D) the newspapers' comments

Question

Quizplus · Accepted Answer

The notes to financial statements provide additional information and disclosures about the financial performance and position of the company, which can be very revealing and important to consider when analyzing financial statements. The other choices, such as the president's and board of directors' comments, may also provide insight, but they are not as reliable or objective as the information provided in the financial statements themselves. The newspapers' comments may be useful for getting a broader perspective on the company and its industry, but they are not as reliable or detailed as the financial statements.

When Analyzing Financial Statements, What Should You Make Sure to Read