In financial statement analysis, the most difficult of the following items to predict is whether:
A) The company will be liquid in six months.
B) The company's market share is increasing or declining.
C) Profits have increased since the previous year.
D) The market price of capital stock will rise or fall over the next two months.

Question

Quizplus · Accepted Answer

Predicting the market price of capital stock is influenced by various external factors such as economic conditions, political events, and investor sentiments, making it the most difficult to predict among the given options. The other options, such as liquidity, profit increase, and market share, can be predicted by analyzing the company's financial statements and market trends.

In Financial Statement Analysis, the Most Difficult of the Following