Industry standards for financial statement analysis:
A)Are based on a single competitor's financial performance.
B)Are set by the government.
C)Are used to compare a company's performance to industry performance.
D)Are based on rules of thumb.
E)Compare a company's income with its prior year's income.

Question

Quizplus · Accepted Answer

Industry standards for financial statement analysis are typically used to compare a company's performance to industry performance, not just a single competitor's financial performance. They are not set by the government, but rather by industry associations or professional organizations. They are also not based on rules of thumb, but rather on objective data and benchmarks. While comparing a company's income with its prior year's income is a common practice, it is not the only or most important factor in financial statement analysis.

Industry Standards for Financial Statement Analysis