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Which of the following statements is correct about drawing analytical inferences from initial review of financial statements? 1 . You cannot draw analytical inferences about
Which of the following statements is correct about drawing analytical inferences from initial review of financial statements?
You cannot draw analytical inferences about the businesss creditworthiness by observing trends in profitability and capital structure.
Initial conclusions cannot be drawn from changes in businesss risk drivers only from their component parts.
Changes in risk drivers or in their component parts are often not apparent during review of a borrowers financial statements.
Risk drivers are frequently analysed to add structure, relevance, and consistency to the process of identifying the factors that affect a businesss credit risk.
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