The objective of accounting analysis is typically not to:

Question $7$ Answer

a$.$

Identify areas in the financial statements that are most strongly affected by management's discretionary accounting choices.

b$.$

Identify accounting choices that are most critical to a firm's accounting performance.

c$.$

Assess whether the financial statements fully comply with accounting conventions and regulations.

d$.$

Understand management's reporting incentives and strategy.

e$.$

Undo the financial statements from distortions.