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When conducting a financial analysis of a firm, financial analysts:
a) cannot use accounting information as it is historical.
b) rely solely on accounting information. frequently use accounting information.
c) ignore accounting information but do use marketing information.
d) assume the future will be a repeat of the past as reflected in the firm’s accounting reports.

Answer :

Answer:

The correct answer is letter "C": frequently use accounting information.

Explanation:

Financial Analysis is a general term that refers to the use of accounting data to make decisions regarding business and investment. Managers use financial analysis in business to help them operate the organization more effectively and, thus, more profitably. Typically financial calculations used by business managers include accounts receivable turnover ratio, break-even points, net present value, internal rate of return, and capital employed ratio.

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