All of the Following Are True of a Financial Statement

question 55

Multiple Choice

All of the following are true of a financial statement analysis report, except:

• A) Forces preparers to organize their reasoning and to verify the logic of analysis.
• B) Helps users and preparers to refine conclusions based on evidence from key building blocks.
• C) Serves as a method of communication to users.
• D) Contains ambiguities and qualifications.
• E) Enables readers to see the process and rationale of analysis.

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Definitions:

Conditional

Dependent on or subject to one or more conditions or requirements being met; not absolute.

Declarative

Relating to a type of statement that expresses a fact or opinion simply and directly.

Precise

Being exact, accurate, and clear in expression or detail.

Concise

Expressing or covering much in few words; brief in form but comprehensive in scope.