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A Financial Analyst Is Comparing Two Companies

Question 93

Multiple Choice

A financial analyst is comparing two companies.Which of the following would cause major problems in the evaluation process?


A) One company has a fiscal year that ends on October 31,while the other company has a fiscal year that ends on August 31.
B) One company reported nonoperating activities,while the other company did not.
C) The companies operate in different industries.
D) Inflation has been low for the past several years.

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