All of the following are examples of questions that a financial analyst
All of the following are examples of questions that a financial analyst would ask about acompany’s use of estimates in the recording of expenses except:01a. Do warranty provisions cover actualexpenditures?b. Are sales taxes included inrevenues?c. What expected lives and residual values are used for depreciationcomputations?d. Is the allowance for uncollectible accounts sufficient to coverbad debts?A financial analyst is comparing two companies using a top-down approach. Which of thefollowing would cause problems in the evaluation process?01a. Inflation has been low for severalyears.b. One company has been in business significantly longer than theother company.c. One company’s fiscal year-end is October 31, while the othercompany’s fiscal year-end is December 31.d. The companies operate in differentindustries.