Ask Question
BusinessBusiness
29 June, 10:47

Ashton is an investor looking at the income statements of two different companies. The first company has a very detailed income statement, and the second company has a very condensed income statement. Which company is Ashton more likely to invest in? Why?

+5
Answers (1)
  1. 29 June, 12:41
    0
    The first company with detailed information.

    Explanation:

    Financial statements show the financial position of a company at a particular period in time. The various types are balance sheet, income statement, and cash flow statement.

    The income statement shows more clearly value of the company.

    When Ashton is studying the income statement, he will need as much detail as possible so that he can make informed decision to invest.

    The company with detailed income statement will be a better option. The company with condensed income statement will most likely not reveal some important information that will present itself as an unpleasant surprise in the future.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ashton is an investor looking at the income statements of two different companies. The first company has a very detailed income statement, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On March 1, 2019, Baltimore Company's beginning work in process inventory had 9,500 units. This is its only production department. Beginning WIP units were 50% complete as to conversion costs.
Answers (1)
What is something economists need to know the least in order to effectively fine tune the economy? a. potential income/output. b. the cpi. c. the multiplier. d. aggregate equilibrium income/output five years ago?
Answers (1)
A process by which banks designate an area within which they refuse to lend money for improvements is
Answers (2)
he accounting rate of return is calculated as: Multiple Choice The after-tax income divided by the total investment.
Answers (1)
Darby's employer, Holden Inc., has a policy that permits any employee who works as late as 8:00 P. M. to eat dinner at company expense. She is in the habit of staying until 8:00 P. M. every night, whether her workload requires it.
Answers (1)
New Questions in Business
Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000.
Answers (1)
Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73,000 to invest.
Answers (2)
Who among the following is a manager with good time-management skills? a. Jim, who completes tasks mostly through his own efforts to ensure consistency b. Lee, who performs at least five activities at a time to increase productivity c.
Answers (1)
Joseph ray just received an inheritance of $35,775 from his great aunt. he plans to invest the funds for retirement. if joseph can earn 4.
Answers (1)
The three types of manufacturing costs in a job order costing system include
Answers (1)
Home » Business » Ashton is an investor looking at the income statements of two different companies. The first company has a very detailed income statement, and the second company has a very condensed income statement.
Sign Up Forgot Password?