Indicate Whether Each of the Following Statements About Financial Statement

question 21

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a)Comparing percentages derived from financial statement analysis has the drawback of varying materiality levels.
_____ b)The materiality of accounting information refers to whether it is viewed as favorable (good news)or unfavorable (bad news).
_____ c)Companies are exempt from accounting for immaterial items in compliance with generally accepted accounting principles.
_____ d)To judge the materiality of an absolute financial statement amount,one must consider the size of the company reporting it.
_____ e)Meaningful comparisons between two companies generally should be made using percentage analysis or ratio analysis,not absolute amounts.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Accommodate

Adjusting actions or decisions to take into account others' needs, preferences, or special requirements.

Avoid

To keep away from or stop oneself from doing something; an action or strategy aimed at preventing undesirable outcomes.

Sources Of Conflict

These are underlying reasons or conditions that lead to disagreement or contention between individuals or groups.