Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a)Comparing percentages derived from financial statement analysis has the drawback of varying materiality levels.
_____ b)The materiality of accounting information refers to whether it is viewed as favorable (good news)or unfavorable (bad news).
_____ c)Companies are exempt from accounting for immaterial items in compliance with generally accepted accounting principles.
_____ d)To judge the materiality of an absolute financial statement amount,one must consider the size of the company reporting it.
_____ e)Meaningful comparisons between two companies generally should be made using percentage analysis or ratio analysis,not absolute amounts.