Question
Omega Corp. released the unaudited financial statement prepared by its accountants. According to the statement, the profit margin of the company has increased. The sales
Omega Corp. released the unaudited financial statement prepared by its accountants. According to the statement, the profit margin of the company has increased. The sales of its electronic appliances have also increased. Based on the unaudited financial statement, buying Omega Corp. shares would be a good investment.
?
Which of the following, if true, casts the most doubt on the conclusion??
1. Omega Corp. does not maintain more than a months supply of inventory.
2. The earnings reported in the audited financial statement for Omega Corp. are lower than that reported in the unaudited financial statement.
3. The sales of other products of Omega Corp. have not shown the increase that the sales of electronic appliances have shown.
4. The fixed expenses of the company have increased significantly.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started