Question

Which of the following statements is correct?A) Peer group analysis is easier when a firm is a conglomerate versus when it only has a single line of businessB) Peer group analysis is easier when seasonal firms have different fiscal yearsC) Peer group analysis is easier when seasonal firms have different fiscal yearsD) Comparing results across geographic locations is easier since all countries now use a common set of accounting standardsE) Adjustments have to be made when comparing the income statements of firms that use different methods of accounting for inventory

Answer 1

E. Adjustments have to be made when comparing the income statements of firms that use different methods of accounting for inventory.