Techniques Employed by Firms to Make Their Financial Statements Look

question 80

Multiple Choice

Techniques employed by firms to make their financial statements look better than they actually are, are called:

• A)DuPont techniques.
• B)window-dressing techniques.
• C)trend analysis techniques.
• D)benchmarking.
• E)equity multipliers.

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Definitions:

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.

Portfolio Weight

The percentage composition of a particular holding in relation to the total value of the portfolio, used to assess diversification and risk.