Asked by Mercy’s World on May 25, 2024
Verified
Which one of the following helps the analyst remove the effects of an information filter?
A) Financial statements.
B) SEC Form 10K.
C) Note disclosures in financial statements.
D) Trend analysis.
Information Filter
A process or system that selectively separates relevant data from irrelevant or less important information.
SEC Form 10K
SEC Form 10K is an annual report filed by publicly traded companies in the U.S., providing a comprehensive overview of the company's financial performance and condition.
Note Disclosures
Supplementary information included in financial statements, providing detailed explanations of various line items and accounting policies.
- Comprehend the principle of eliminating information filters to achieve precise financial analysis.
Verified Answer
CG
Caleb GrantMay 27, 2024
Final Answer :
C
Explanation :
Note disclosures in financial statements provide additional context and details beyond the basic financial statements, helping analysts understand the nuances and underlying facts that might be obscured or not fully explained in the primary financial documents. This additional information can help remove the effects of an information filter by offering a clearer, more comprehensive view of a company's financial health and operations.
Learning Objectives
- Comprehend the principle of eliminating information filters to achieve precise financial analysis.