Managers' ability to freely choose among several alternative reporting methods makes it more difficult for a financial analyst to evaluate the activities and condition of a company.

Question

Quizplus · Accepted Answer

If managers choose different reporting methods, it can create inconsistency and confusion when trying to compare and analyze financial information. This can make it more challenging for financial analysts to accurately evaluate a company's activities and condition.

Managers' Ability to Freely Choose Among Several Alternative Reporting Methods