Which of the Following, If True, Would Weaken the Case

question 29

Multiple Choice

Which of the following, if True, would weaken the case that more than one type of financial statement should be examined in order to determine a company's financial health?

• A) Nowadays many companies burnish their balance sheet by claiming inflated figures for goodwill.
• B) An income statement from one year may be radically different from the one for the previous year.
• C) It can be difficult for auditors to independently verify certain figures in income statements.
• D) The management by data trend has led companies to consider as imperative detailed and accurate financial statements.
• E) In times of recession, companies often reduce their accounting and financial management staffs.

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Definitions:

Realization

The act of becoming fully aware of something as a fact or understanding a concept completely.

Open to Experience

A personality trait describing individuals who are imaginative, curious, and open-minded toward new experiences.

Neurotic

A characteristic of personality marked by fluctuations in emotion, anxiousness, shifts in mood, concerns, and apprehension.

Creativity

The ability to generate new ideas, solutions, or products that are both novel and appropriate.