Question

All of the following are the building blocks for financial statement analysis except:

A Targeting growth opportunities that diversify exchange rates, risk exposure, and political uncertainty.

B Describing strategies that a firm pursues to differentiate itself from competitors in order to evaluate competitive advantages, sustainability of the firm’s earnings, and its risks.

C Identification of the economic characteristics of the industries and the relation of those economic characteristics to the various financial statement ratios.

D Evaluating the financial statements, including the accounting concepts and methods that underlie them and the quality of the information they provide.

Answer 1

Answer is option A

A. Targeting growth opportunities that diversify exchange rates, risk exposure, and political uncertainty.

Economics, strategy and financial statements are three the building blocks for financial statement analysis. Focusing on growth opportunities that diversify risks from exchange rates and political uncertainty in the future is not the building block.