Which of the Following Is a Potential Limitation of Financial

question 59

Multiple Choice

Which of the following is a potential limitation of financial statement analysis?

• A)Lack of comparability of firms in different industries
• B)The impact of changing economic conditions
• C)The impact of having more than one acceptable alternative accounting principle for accounting for a given transaction or economic event
• D)All of these answers are correct.

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Definitions:

Affirmative Action Plans

Strategies implemented by organizations to promote increased representation and inclusion of groups historically discriminated against.

Civil Right Act

Legislation aimed at preventing discrimination based on race, color, religion, sex, or national origin and enforcing legal rights of all citizens.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people.

Promissory Estoppel

The legal doctrine that restricts an offeror from revoking an offer under certain conditions, even though consideration has not been promised to bind the agreement. To be effective, promissory estoppel requires that the offeror know, or be presumed to know, that the offeree might otherwise make a definite and decided change of position in contemplation of promises contained in the offer.