Which of the statements below is FALSE?
A)Financial statements are a collection of historical and current activities of the company.
B)The collection of value over time found in financial statements requires us to pay attention to how we construct financial ratios so as to glean information for analysis.
C)All financial statements are constructed with the same accounting principles,so you can always compare different firms based solely on these statements.
D)We want to analyze financial statements so as to compare different companies and their performance relative to our company.

Question

Quizplus · Accepted Answer

This statement is false. Different firms can use different accounting principles, which can make comparisons based solely on financial statements difficult.

Which of the Statements Below Is FALSE