Which of the Following Statements) Describe the Principal Reasons) Why

Multiple Choice

Which of the following statements) describe the principal reasons) why investors and
creditors use financial statement analysis?

1. To assess the risks associated with expected returns
2. To establish recommended dividend and interest payments
3. To evaluate top and middle level management
4. To predict the amount of expected returns

A) 1 and 2
B) 1 and 4
C) 3 and 4
D) 1, 2, and 3