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Which of the statements below is FALSE? A) Financial statements are a collection of historical and...

Which of the statements below is FALSE? A) Financial statements are a collection of historical and current activities of the company. B) The collection of value over time found in financial statements requires us to pay attention to how we construct financial ratios so as to glean information for analysis. C) All financial statements are constructed with the same accounting principles, so you can always compare different firms based solely on these statements. D) We want to analyze financial statements so as to compare different companies and their performance relative to our company.

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Answer #1

C)All financial statements are constructed with the same accounting principles, so you can always compare different firms based solely on these statements

No because different entities uses different Accounting principles , when accounting principle is adopted differently it is too difficult to compare the other entities financial statements.

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