Question #21
Reading: Reading 13 Integration of Financial Statement Analysis Techniques
PDF File: Reading 13 Integration of Financial Statement Analysis Techniques.pdf
Page: 12
Status: Correct
Correct Answer: A
Question
An analyst is analyzing a discount manufacturer of parts and supplies. She has followed her firm's suggested financial analysis framework and has communicated with company suppliers, customers, and competitors. This is an input that occurs while:
Answer Choices:
A. processing data
B. collecting data
C. establishing the objective of the analysis
Explanation
Communication with management, suppliers, customers, and competitors is an input
during the data collection step. Processing data is the third phase of the financial analysis
framework. Establishing the objective of the analysis is part of the "define the purpose"
phase of the financial analysis framework.