Industry standards for finacial statement anlysis: A) are based on a single comp
ID: 2409353 • Letter: I
Question
Industry standards for finacial statement anlysis: A) are based on a single competitor's finacial performance, B) are set by the goverment, C) are available for finacial performance and condition of the company industry, D) are based on rules of thumbs, E) compare a company's income with its prior year's income
Intra- company standards for financial statement analysis: A) are based on a company's prior performance and relations between its finacial items, B) Are often set by competitors, C) are set by the company's industry through published statistics, D) are based on a rule of thumbs, E) Are published in Dun and bradstreet
Explanation / Answer
?Industry standards for financial statement analysis: (D) are based on rule of thumb.
?Rule of thumb means some standards or bench marks which are practiced in best. Industry standards for statement analysis are also based on rule of thumb because no one competitor's performance should not be considered for statement analysis while comparing in an industry.
?Intra-company standards for financial statement analysis: (A) are based on company's prior performance and relations between its financial items.
?Intra-company analysis is mainly done with the comparison between the company's past performance and the present performance.