If You Are Taking a Common Sense Approach to Evaluating

Multiple Choice

If you are taking a common sense approach to evaluating a firm's accounting information, which of the following would not be something that you would hope to see?

A) Financial statements audited by an outside source
B) Remembering that a balance sheet is only a snapshot in time
C) Paying great attention to current profit and not worrying about the future
D) Strategies to reduce operating expenses
E) How the company manages its cash flow