13. An analyst is comparing the ratios of two firms and needs to address accounting differences. What would be an accounting difference between these two firms?
A- The firms have different auditors
b- The firms have different fiscal years
C- The firms use different inventory methods
D- The firms are in different industries
Answer is C- The firms use different inventory methods
The accounting difference is created by different inventory methods used by two firms which may be FIFO, LIFO etc
13. An analyst is comparing the ratios of two firms and needs to address accounting differences....
If you are interested in comparing the difference in yields between two securities with identical maturities but different risk of default, you would be looking at? a. the yield curve b. the credit spread c. the inflation index d. APR vs EAR
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