R.J. Falk is the chief executive officer of Ventura Electronics. Falk is an expe

R.J. Falk is the chief executive officer of Ventura Electronics. Falk is an expert engineer but a novice in accounting. Falk asks you as an accounting major to explain(a) the bases for comparison in analyzing Ventura financial statements and (b) the limitations if any in financial statement analysis.InstructionsWrite a memo to R.J. Falk that explains the basis for comparison and the factors affecting quality of earnings.