What is the basic problem with using financial statement analysis to measure performance of a firm's financial management?

Multiple Choice

• There is no underlying theory to set guidelines for benchmarks on the measures.

• Different firms may follow different fiscal periods.

• There may not be any reasonable peer group for global conglomerates with which comparisons can be made based on financial analysis measures.

• Different firms may use different accounting procedures which produce financial statements that are not directly comparable.

• Some companies have operations in more than one industry and therefore no single comparable peer group.