Technical Analysts Feel That Financial Accounting Statements Lack Information,or Report

question 40

Multiple Choice

Technical analysts feel that financial accounting statements lack information,or report it in a way that makes comparisons difficult.Which of the following does not constitute a problem?

• A) Detailed information concerning sales and expenses by product line.
• B) Statements of change in financial position.
• C) Alternative ways of reporting expenses.
• D) Alternative ways of reporting assets and liabilities.
• E) The availability of psychological and nonquantitative variables.

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Definitions:

Business Environment

The combination of internal and external factors that influence a company's operating situation, including economic, legal, political, and social conditions.

Information

Data that is processed, organized, structured, or presented in a given context to make it meaningful and useful.

Ratio Data

A type of quantitative data that not only measures the magnitude but also allows for the comparison of differences and the calculation of ratios, having an absolute zero point.

Categorical Data

Data that can be categorized into groups or categories that are mutually exclusive, without any natural ordering.