Which of the Following Statement(s) Describe the Principal Reason(s) Why

question 112

Multiple Choice

Which of the following statement(s) describe the principal reason(s) why investors and creditors use financial statement analysis? 1. To assess the risks associated with expected returns
2) To establish recommended dividend and interest payments
3) To evaluate top and middle level management
4) To predict the amount of expected returns

• A) 1 and 2
• B) 3 and 4
• C) 1 and 4
• D) 1, 2, and 3

---

Definitions:

Fractions

Numerical quantities that represent a part of a whole, usually written with a numerator and a denominator.

Multiply

The mathematical operation of increasing one number by another number, essentially repeated addition.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with by reducing it to its most basic form.

Multiply

The mathematical operation of repeated addition of a number by itself a specified number of times.