Which of the Following Is the Main Lesson That Analysts

question 43

Multiple Choice

Which of the following is the main lesson that analysts and investors should take from the cases of Enron and HIH?

• A) The information in financial statements should be viewed extremely critically.
• B) It is not possible to effectively evaluate a company unless all the financial statements are fully and correctly prepared.
• C) Readers of even fraudulent financial statements can spot signs of a firm's financial health if those statements are read fully and with care.
• D) The usefulness of financial statements to investors is entirely dependent on the ethics of those constructing them.

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Definitions:

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An action typically recognized by a computer program as the pressing and releasing of a button on a pointing device.

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A class used in Java to create a window where components like labels, buttons, and text fields can be added.

Window

A graphical control element, part of a graphical user interface, that displays content and can interact with the user.