Question: Question 2 8 1 . 5 pts Which statement is generally false? Financial statement ratios and trend analysis should never be used to look for

Question

28

1.5

pts

Which statement is generally false?

Financial statement ratios and trend analysis should never be used to look for possible areas of fraud because the results of ratios and trend analysis are based on historical financial statements.

The trend in operating income is as important as the trend in earnings.

If net income is moving up while cash flow from operations is drifting downward, this maybe an indication of possible fraud.

Question 2 8 1 . 5 pts Which statement is

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