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Which of the following is a limitation of consolidated financial statements? Consolidated financial can mask the performance of weaker companies. Ratios and percentages derived from
Which of the following is a limitation of consolidated financial statements?
Consolidated financial can mask the performance of weaker companies. |
Ratios and percentages derived from consolidated financial statements can be deceptive because they are composite (weighted) averages. |
Consolidated statements can eliminate detail about product lines, divisional operations, and the relative profitability of various business segments |
Answers a and b only |
All of these are limitations of consolidated financial statements. |
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