The Second Step in Financial Statement Analysis Is to Identify

question 70

Multiple Choice

The second step in financial statement analysis is to identify the company strategy.Which of the following is a question an analyst should ask when performing a strategy analysis?

• A) Are industry sales growing rapidly or slowly?
• B) Do earnings include revenues that appear mismatched with the business model employed by the firm?
• C) Does the industry include a large number of firms selling similar products?
• D) What is the company's degree of geographical diversification?

---

Definitions:

Algorithm

A step-by-step procedure or formula for solving a problem or performing a task, usually in the domain of computing and mathematics.

Top-Down Algorithm Development

A programming approach that begins with defining the high-level functions and then progressively breaking them down into smaller and more detailed steps.

Byte

A unit of digital information in computing and telecommunications, typically consisting of eight bits.