Which of the Following Is Incorrect? When Using the 10-Q

question 62

Multiple Choice

Which of the following is incorrect? When using the 10-Q, the analyst should be aware that the usefulness of the quarterly financial statements might be affected by:

• A)seasonality.
• B)adjustments made in the final quarter of the year.
• C)the use of cash accounting.
• D)the increased use of estimates.

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Definitions:

Years

Years are units of time used to measure duration, consisting of 12 months or 365 days in a common year and 366 in a leap year.

Ordinary Annuity

A series of equal payments made at equal intervals of time, commonly used in calculations of loan repayments or future savings, where interest compounding occurs at the end of each period.

Expressed

Clearly communicated or made known in words, actions, or symbols.

Years

Units of time equal to 365 days, or 366 in a leap year, used to measure durations and ages.