All of the Following Are True of a Financial Statement

question 113

Multiple Choice

All of the following are true of a financial statement analysis report,except:

• A)Accounting standards determine which ratios are relevant and useful for the analysis.
• B)The executive summary provides a brief analysis of results.
• C)The analysis overview includes background on the company,its industry,and the economy.
• D)Evidential matter includes ratios,trends,comparisons and all analytical measures.
• E)Background on the company,its industry,and the economy is part of the analysis overview.

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Definitions:

Premium

The amount paid for an insurance policy.

Face Value

The nominal or stated value of a security or financial instrument, such as a bond, note, or coin.

Taxable Income

Earnings that are taxable.

Medicare Tax

The amount of Medicare tax an employee pays is a set percentage of the entire income with no maximum amounts; the amount paid is split between the employee and employer.