When performing financial analysis which of the following is true in respect of unusual transactions...

70.2K

Verified Solution

Question

Accounting

When performing financial analysis which of the following is true in respect of unusual transactions that have the effect of boosting profits, or causing unusal swings in gross profit margins or other key ratios.
a) They should largely be ignored given their one-off nature
b) They may be indicators of fraud and should be referred to financial regulators
c) They should be explored further to ascertain the reasons behind them
d) They should be adjusted out of performance measures used for ratio analysis

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students