Why Do Financial Analysts and Other Readers of Financial Statements

question 42

Multiple Choice

Why do financial analysts and other readers of financial statements want segmented information?

• A)Consolidation obscures facts that may be important for evaluating financial statements.
• B)More information is always preferred to less information.
• C)To ensure that illegal business combinations are not taking place.
• D)Models for economic forecasting have not been developed using consolidated financial statement information.

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Definitions:

Negotiating Skills

The ability to effectively discuss and reach agreements or compromises between parties with differing opinions or needs.

360-Degree Feedback

is a performance appraisal method where employees receive confidential, anonymous feedback from the people working around them, including peers, subordinates, and supervisors.

Subordinates

Individuals who are lower in rank or position in an organization and are typically subject to the authority of superiors.

Peer

An individual who is equal to another in abilities, qualifications, age, background, and social status.