Which of the Following Statements Is False

question 29

Multiple Choice

Which of the following statements is false?

• A) It is important to analyze operating expenses over which management exercises discretion and that have considerable impact on the firm's profitability.
• B) Impairment charges do not need to be analyzed since they are generally a non-recurring expense.
• C) Operating expenses should be tracked in terms of trends, absolute amounts, relationship to sales, and relationship to industry competitors.
• D) Operating expenses can be easily analyzed by preparing a common-size income statement.

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Definitions:

Unemployment

The situation when individuals who are capable of working and are looking for a job cannot find employment.

U.S. Newspapers

Print or digital publications in the United States that provide news, analysis, opinion, and features on a variety of topics.

Money Supply

The complete aggregation of monetary assets within an economy at a particular point, including cash, coins, and the funds in checking and savings accounts.

Velocity

The rate at which money circulates within an economy, often measured as the ratio of nominal GDP to the money supply.