Which of the Following Should Be the First Phase of Analysis

question 11

Multiple Choice

Which of the following should be the first phase of analysis of information gathered for a business valuation engagement?

• A) identifying significant relevant factors
• B) reconciling information collected with the financial statement analysis
• C) analysis of the company's financial statements
• D) developing a discount rate

---

Definitions:

Higher Income

A level of earnings or revenue that is above average or an increase in financial earnings.

Marginal Utility

Marginal Utility is the additional satisfaction or benefit gained from consuming one more unit of a product or service.

Total Utility

Total contentment experienced through the use of a particular volume of goods or services.

Social Security System

The federal system of social insurance programs. It includes three separate programs that are financed through separate funds: the Old Age and Survivors Insurance (OASI) program, the Disability Insurance (DI) program, and the Health Insurance (HI), or Medicare program.