Which One of the Following Statements Is Correct

question 111

Multiple Choice

Which one of the following statements is correct?

• A)Peer group analysis is easier when a firm is a conglomerate versus when it has only a single line of business.
• B)Peer group analysis is easier when seasonal firms have different fiscal years.
• C)Peer group analysis is simplified when firms use varying methods of depreciation.
• D)Comparing results across geographic locations is easier since all countries now use a common set of accounting standards.
• E)Adjustments have to be made when comparing the income statements of firms that use different methods of accounting for inventory.

---

Definitions:

Budgetary Slack

The practice of underestimating revenue or overestimating expenses to make budget targets more easily attainable.

Window Dress

Window Dressing is a financial strategy used by companies to improve the appearance of their financial statements or investment portfolio, often at the end of an accounting period.

Sales Staff

Employees responsible for the sale of products or services, pivotal in achieving business revenue targets and maintaining customer relationships.

Budgeted Sales

Projected sales revenue a company plans to achieve in a certain period, often used for planning purposes.