Which of the Following Is Incorrect? When Using the 10-Q

question 62

Multiple Choice

Which of the following is incorrect? When using the 10-Q, the analyst should be aware that the usefulness of the quarterly financial statements might be affected by:

• A)seasonality.
• B)adjustments made in the final quarter of the year.
• C)the use of cash accounting.
• D)the increased use of estimates.

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Definitions:

Transnational Corporations

Large companies that operate and have assets in more than one country, functioning with a global perspective.

Local Firms

Businesses that operate within a specific geographic area or community, typically offering products or services to the local population.

Political Risks

The possibility of losses to a business due to changes in a country's political environment or policies.

North American Free Trade Agreement

A trilateral trade agreement between the United States, Canada, and Mexico aimed at eliminating tariffs and reducing trade barriers.