Anyone analyzing a firm's financial statements should

Question

Quizplus · Accepted Answer

Using audited financial statements is important as they have been reviewed by an independent auditor and provide a reliable source of information. Trend analysis is helpful to identify patterns in the data over time and assess the company's performance history. Benchmark analysis compares the company's financial ratios with those of competitors in the same industry or sector to evaluate the company's position and performance. Therefore, all three options are important for a thorough analysis of a firm's financial statements.

Anyone Analyzing a Firm's Financial Statements Should