Which of the Following Is Least Useful in Evaluating a Company's

question 152

Multiple Choice

Which of the following is least useful in evaluating a company's financial statements?

• A)Comparison with government economic data for the economy as a whole
• B)Comparison with other companies in the same industry
• C)Comparison of the company's current period data with accounting data from 5 years ago
• D)Comparison of the company's current period data with that of the last year

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Definitions:

Postretirement Health Care Benefits

Benefits provided by an employer to retired employees, covering medical and health-related expenses.

Tax Deductible

Expenses or costs that can be subtracted from gross income to reduce the taxable income.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.

Pension Reform Act

Legislation aimed at improving the management and sustainability of pension funds.