Historical Comparisons Provide Information to Managers About Changes in the Competitive

question 52

Multiple Choice

Historical comparisons provide information to managers about changes in the competitive position of a firm.Historical comparisons often are misleading

• A) if the overall strategy of the firm is the same.
• B) if the firm shows constant growth.
• C) in periods of recession or economic boom.
• D) if the firm's stock is publicly traded.

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Definitions:

Permanent

Describes assets or records that are intended to be held or used on a long-term basis and not expected to be sold or otherwise converted into cash within a year.

General Journal

A journal used to record all types of accounting transactions with detailed explanations.

Permanent

Refers to accounts that represent the financial standing of a company and carry their ending balances over from one accounting period to the next, such as assets, liabilities, and equity accounts.