Why Do Financial Analysts and Other Readers of Financial Statements

question 24

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.

---

Definitions:

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, often leading to unemployment.

Unemployment Insurance

A government-provided insurance that pays out when an individual loses their job and meets certain eligibility requirements.

Unemployment

A scenario in which people who are able to work and are actively looking for a job cannot secure employment.

Minimum-Wage Laws

Laws establishing the minimum per-hour payment that employers are legally allowed to offer their employees.