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omega corp. released the unaudited financial statement prepared by its accountants -

Omega Corp. released the unaudited financial statement prepared by its accountants

Question: Omega Corp. released the unaudited financial statement prepared by its accountants. According to the statement, the profit margin of the company has increased. The sales of its electronic appliances have also increased. Based on the unaudited financial statement, buying Omega Corp. shares would be a good investment.

Which of the following, if true, casts the most doubt on the conclusion?

Omega Corp. does not maintain more than a month’s supply of inventory.

The earnings reported in the audited financial statement for Omega Corp. are lower than that reported in the unaudited financial statement.

The sales of other products of Omega Corp. have not shown the increase that the sales of electronic appliances have shown.

The fixed expenses of the company have increased significantly.

 

 

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