Industry standards for financial statement analysis
A)Are based on a company's prior performance
B)Are set by competitors
C)Are set by the company's industry
D)Are based on rules of thumb
E)Are based on a company's prior performance and on rules of thumb

Question

Quizplus · Accepted Answer

Industry standards for financial statement analysis are set by the company's industry. They provide a benchmark for comparing a company's financial performance with its industry peers. These standards include key financial ratios and metrics that are specific to the industry, such as inventory turnover, days sales outstanding, and gross profit margin.

Industry Standards for Financial Statement Analysis