Financial-Accounting-and-Reporting Exam Dumps | X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities

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Question 20/34

X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that

A. the auditor's report is influenced by the directors.

B. the declaration of dividends assures high earnings per share.

C. the auditor's report refers to the company's prior year financials.

D. a declaration of dividend is the ultimate measure of a company's profitability.

Question 20/34

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