Which of the Following Techniques Are not used by Accountants

question 141

Multiple Choice

Which of the following techniques are not used by accountants to interpret and report financial information?

• A) Graphs.
• B) Special memos for each class of external users.
• C) Charts.
• D) Ratios.

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Definitions:

Extraordinary Items

Refers to rare and infrequent transactions that are outside the normal course of business, often excluded from regular income statement categories to provide a clearer view of ongoing operational performance.

Noncurrent Assets

Long-term assets not expected to convert into cash within one year, such as property, plant, and equipment, intangible assets, and long-term investments.

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Business actions that are directly related to the production and delivery of goods and services, which are fundamental to the company’s operations.