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Questions and Answers
How can financial statements be read to understand changes over time?
How can financial statements be read to understand changes over time?
- By comparing them to prior periods (correct)
- By comparing them to industry standards
- By analyzing their absolute values
- By comparing them to competitors
What do comparative income statements report?
What do comparative income statements report?
- Company's dividends for last year and this year
- Company's total assets for last year and this year
- Company's income for last year and this year (correct)
- Company's expenses for last year and this year
How can financial statements be read to evaluate company performance against industry peers?
How can financial statements be read to evaluate company performance against industry peers?
- By analyzing their standalone values
- By comparing them to competitors' financial statements (correct)
- By comparing them to economic indicators
- By comparing them to industry regulations
What do analysts gain by comparing financial statements to other companies?
What do analysts gain by comparing financial statements to other companies?
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In what way are financial statements similar to reading a nutrition label or a baseball box score?
In what way are financial statements similar to reading a nutrition label or a baseball box score?
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