The Following Steps Make Up the Steps in Financial Statement

question 69

Multiple Choice

The following steps make up the steps in financial statement analysis. 1.Identify the strategies the firm pursues to gain and sustain a competitive advantage.
2) Analyze the current profitability and risk of the firm using information in the
Financial statements.
3) Value the firm.
4) Identify the economic characteristics and competitive dynamics of the industry in
Which a particular firm participates.
5) Assess the quality of the firm's financial statements and,if necessary,adjust them for
Such desirable characteristics as sustainability or comparability.
6) Prepare forecasted financial statements.
Which of the following is the proper order for these interrelated sequential steps?

• A) 4,1,5,2,6,3
• B) 1,2,3,4,5,6
• C) 1,4,2,5,6,3
• D) 1,4,2,5,3,6

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Definitions:

Percent Of People

A statistical measurement that represents a portion of a total group or population in terms of a percentage.

Median

The middle value in a list of numbers, which divides the distribution into two equal halves.

Range

The difference between the highest and lowest scores in a dataset, showing the spread or dispersion of the values.

Frequency Polygons

Graphical representations of the distribution of data points, where frequencies are depicted by connecting midpoints of intervals.