indicated whether each of the following statements about financial statement analysis is true or false.

a) comparing percentages derived from financial statement analysis has the drawback of varying materiality levels.

b) the materiality of accounting information refers to whether it is viewed as favorable (good news) or unfavorable (bad news).

c) companies must account for immaterial items in compliance with generally accepted accounting principles.

d) to judge the materiality of an absolute financial statement amount, one must consider the size of the company reporting it.

e) meaningful comparisons between two companies generally should be made using percentage analysis or ratop analysis, not absoloute amounts.