Factors Than Can Limit the Usefulness of Financial Analysis Do

question 28

Multiple Choice

Factors than can limit the usefulness of financial analysis do not include

• A)professional judgement.
• B)alternative accounting policies.
• C)diversification.
• D)accrual accounting.

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of goods or provision of services, such as materials and labor.

Wages

Payments made to employees for their labor or services, typically on an hourly, daily, or per-task basis.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.