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Posted: June 15th, 2022
All of the following are examples of questions that a financial analyst would ask about acompany’s use of estimates in the recording of bills besides:01a. Do guarantee provisions cowl actualexpenditures?b. Are gross sales taxes included inrevenues?c. What anticipated lives and residual values are used for depreciationcomputations?d. Is the allowance for uncollectible accounts ample to coverbad money owed?A financial analyst is evaluating two corporations utilizing a top-down method. Which of thefollowing would trigger issues in the analysis course of?01a. Inflation has been low for severalyears.b. One firm has been in enterprise considerably longer than theother firm.c. One firm’s fiscal year-end is October 31, whereas the othercompany’s fiscal year-end is December 31.d. The businesses function in differentindustries.
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