Answers
1. The particular items that an analyst should review and study are:
a. The income Statement
b. The balance sheet
c. The Statement of cash flows
d.
Statement of common equity to shareholders (The equity section of the balance sheet)
You should read the notes and appendices to the above mentioned financial statement for extraordinary or one-off items
2. The Securities Exchange Commission (SEC) has the legal authority to set accounting policies in the United States.
The organization that writes the accounting rules is the Financial accounting Standards Board (FASB)
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