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Which of the following is the best source to look for early signs of change in...

Which of the following is the best source to look for early signs of change in a company’s earnings trend?

A. Credit and investment advisory services B. Annual report C. Reports filed with SEC D. Interim financial statements

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Answer #1

Answer is option (D). Interim financial statements

Explanation;

Although annual report and report filed with SEC also helps in finding out changes in the company’s earnings trend but for knowing early signs of change in a company’s earnings trend, interim financial statements is best source because annual report and report filed with SEC provides information at the end of financial year and for knowing trends we have to wait till the end of year. Interim financial statements are issued between year thus stakeholders can know early trends with the help of interim financial statements.

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