The Principal Objective of a Performance Report Is To

question 12

Multiple Choice

The principal objective of a performance report is to:

• A)highlight activities that need management attention.
• B)direct blame to those managers who did not meet goals.
• C)provide a basis for rewarding effective managers.
• D)highlight budgets that have been incorrectly established.

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Definitions:

Fair Values

The selling price of an asset or the payment required to settle a liability in a regulated transaction with market participants, at the time of appraisal.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity.

Fair Market Value

The estimated price at which an asset or service would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Carrying Value

The original cost of an asset or liability adjusted for depreciation, amortization, or impairment, reflecting its current book value.