BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT a normal function of a financial analyst?
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issue earnings forcasts
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examine the records underlying the financial statements to certify their conformance with GAAP
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make buy, hold, and sell recommendations on companies’ stock
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advise institutional investors on their securities holdings
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Explanation:
Detailed explanation-1: -Explanation: Statement of profit and loss is not a tool for financial analysis. Hence, the correct answer is a Statement of profit and loss.
Detailed explanation-2: -A financial analysis will not only help you understand your company’s financial condition, helping you determine its creditworthiness, profitability and ability to generate wealth, but will also provide you with a more in-depth look at how well it operates internally.
Detailed explanation-3: -A company’s outside, independent auditor examines the company’s financial statements and provides a written report that contains an opinion as to whether the financial statements are fairly stated and comply in all material respects with GAAP.
There is 1 question to complete.